Classic Vinyl Limited is a record wholesaler selling new and used vinyl records to record stores and antique shops throughout Canada. The companys comparative financial statements for the fiscal year ending December 31 appear below. The company did not issue any new common or preferred shares during the year. A total of 790,000 common shares were outstanding. The interest rate on the bond payable was 5%, the income tax rate was 30%, and the dividend per common share was $2.20. The market value of the companys common shares at the end of the year was $157. All of the companys sales are on account:

CLASSIC VINYL LIMITED Comparative Balance Sheet (dollars in thousands)
	This Year				Last Year
Assets
Current assets:
Cash	$	2,540			$	2,800
Accounts receivable, net		19,900				20,500
Inventory		33,500				26,320
Prepaid expenses		1,390				1,190
Total current assets		57,330				50,810
Property and equipment:
Land		25,600				25,600
Buildings and equipment, net		92,600				95,000
Total property and equipment		118,200				120,600
Total assets	$	175,530			$	171,410
Liabilities and Shareholders Equity
Current liabilities:
Accounts payable	$	46,500			$	52,489
Accrued payables		1,990				2,540
Notes payable, short term						960
Total current liabilities		48,490				55,989
Long-term liabilities:
Bonds payable		23,600				23,600
Total liabilities		72,090				79,589
Shareholders equity:
Preferred shares		2,000				2,000
Common shares		15,800				15,800
Total paid-in capital		17,800				17,800
Retained earnings		85,640				74,021
Total shareholders equity		103,440				91,821
Total liabilities and shareholders equity		175,530			$	171,410

CLASSIC VINYL LIMITED Comparative Income Statement and Reconciliation of Retained Earnings (dollars in thousands)
	This Year				Last Year
Sales	$	217,000			$	228,000
Cost of goods sold		136,600				135,500
Gross margin		80,400				92,500
Selling and administrative expenses:
Selling expenses		37,350				35,850
Administrative expenses		24,100				22,900
Total selling and administrative expenses		61,450				58,750
Operating income		18,950				33,750
Interest expense		1,180				1,180
Net income before taxes		17,770				32,570
Income taxes		5,331				9,771
Net income		12,439				22,799
Dividends to preferred shareholders		180				1,180
Net income remaining for common shareholders		12,259				21,619
Dividends to common shareholders		640				1,738
Net income added to retained earnings		11,619				19,881
Retained earnings, beginning of year		74,021				54,140
Retained earnings, end of year	$	85,640			$	74,021

Required:

Compute the following financial ratios for this year:

1. Gross margin percentage. (Round your percentage answer to 1 decimal place.)

Gross margin percentage = Gross profit/Sales = 80400/217000 = 37.1%

2. Earnings per share. (Round your answer to 2 decimal places.)

Earning per share = 12259000/790000 = 15.52 per share

3. Priceearnings ratio. (Do not round intermediate calculations and round your final answer to 1 decimal place.)

Price earning ratio = MPS/EPS = 157/15.52 = 10.1

4. Dividend payout ratio. (Do not round intermediate calculations and round your percentage answer to 1 decimal place.)

Dividend payout ratio = DPS/EPS = 2.2/15.52 = 14.2%

5. Dividend yield ratio. (Round your percentage answer to 1 decimal place.)

6. Return on total assets. (Round your percentage answer to 1 decimal place.)

7. Return on common shareholders equity. (Round your percentage answer to 2 decimal place.)

8. Book value per share. (Round your answer to 2 decimal places.)