9.

arnings per Share, Price-Earnings Ratio, Dividend Yield

The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year:

Common stock, $30 par value (no change during the year)	$4,200,000
Preferred $10 stock, $100 par (no change during the year)	2,000,000

The net income was $396,000 and the declared dividends on the common stock were $35,000 for the current year. The market price of the common stock is $10.50 per share.

For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places.

a. Earnings per Share	$
b. Price-Earnings Ratio
c. Dividends per Share	$
d. Dividend Yield		%

10.

Asset turnover

Three major segments of the transportation industry are motor carriers, such as Atlantic; railroads, such as Pacific; and transportation arrangement services, such as Mediterranean. Recent financial statement information for these three companies is shown as follows (in thousands of dollars):

	Atlantic		Pacific		Mediterranean
Sales	$924,649		$3,264,482		$1,682,130
Average total assets	840,590		1,255,570		560,710

a. Determine the asset turnover for all three companies. Round to one decimal place.

Atlantic
Pacific
Mediterranean

b. The ratio of sales to assets measures the number of sales dollars earned for each dollar of assets. The greater the number of sales dollars earned for every dollar of assets, the efficient a firm is in using assets.