Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bolton Corporation had additions to retained earnings for the year just ended of $ 2 0 5 , 0 0 0 . The firm paid

Bolton Corporation had additions to retained earnings for the year just ended of $205,000. The firm paid out $185,000 in cash dividends, and it has ending total equity of $4.90 million. The company currently has 100,000 shares of common stock outstanding.
a. What are earnings per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
b. What are dividends per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
c. What is the book value per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
d. If the stock currently sells for $68 per share, what is the market-to-book ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
e. What is the price-earnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
f. If the company had sales of $3.41 million, what is the price-sales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
\table[[a. Earnings per share,,],[b. Dividends per share,1.85,],[c. Book value per share,,],[d. Market-to-book ratio,,times],[e. Price-earnings ratio,,times],[f. Price-sales ratio,,times]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Global Financial Crisis What Have We Learnt

Authors: Steven Kates

1st Edition

0857934228, 978-0857934222

More Books

Students also viewed these Finance questions