Question
A small company is started up that makes yarn. The company sells a total of 2,000 shares at $50 each to raise money to start
A small company is started up that makes yarn. The company sells a total of 2,000 shares at $50
each to raise money to start the business. At the end of the year, the company makes $9000 in profits and pays out 3,000
in dividends. Complete parts (a) through (f) below.
(a) What is the market capitalization of the company?
The market capitalization is
(Simplify your answer. Do not include the $ symbol in your answer.)
(b) What is the share price?
The share price.
(Simplify your answer. Do not include the $ symbol in your answer.)
(c) What is the earnings per share?
The earnings per share is
$30003000.
(Simplify your answer. Do not include the $ symbol in your answer. Round to two decimal places as needed.)
(d) What is the PE ratio?
The PE ratio is
nothing.
(Simplify your answer. Round to three decimal places as needed.)
(e) What is the dividend in dollars per share?
The dividend per share is
$30003000
(Simplify your answer. Do not include the $ symbol in your answer. Round to two decimal places as needed.)
(f) What is the dividend as a percentage of the share price?
The dividend per share is
nothing%
of the share price.
(Simplify your answer. Round to one decimal place as needed.)
Enter your answer in each of the answer boxes.
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