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Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on the following page. The company did not issue any

Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on the following page. The company did not issue any new common or preferred stock during the year. A total of 600 thousand shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75. The market value of the companys common stock at the end of the year was $26. All of the companys sales are on account.

Heritage Antiquing Services Comparative Balance Sheet (dollars in thousands)
This Year Last Year
Assets
Current assets:
Cash $ 1,080 $ 1,210
Accounts receivable, net 9,000 6,500
Inventory 12,000 10,600
Prepaid expenses 600 500
Total current assets 22,680 18,810
Property and equipment:
Land 9,000 9,000
Buildings and equipment, net 36,800 38,000
Total property and equipment 45,800 47,000
Total assets $ 68,480 $ 65,810
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 18,500 $ 17,400
Accrued payables 900 700
Notes payable, short term - 100
Total current liabilities 19,400 18,200
Long-term liabilities:
Bonds payable 8,000 8,000
Total liabilities 27,400 26,200
Stockholders' equity:
Preferred stock 1,000 1,000
Common stock 2,000 2,000
Additional paid-in capital 4,000 4,000
Total paid-in capital 7,000 7,000
Retained earnings 34,080 32,610
Total stockholders' equity 41,080 39,610
Total liabilities and stockholders' equity $ 68,480 $ 65,810

Heritage Antiquing Services Comparative Income Statement and Reconciliation (dollars in thousands)
This Year Last Year
Sales $ 66,000 $ 64,000
Cost of goods sold 43,000 42,000
Gross margin 23,000 22,000
Selling and administrative expenses:
Selling expenses 11,500 11,000
Administrative expenses 7,400 7,000
Total selling and administrative expenses 18,900 18,000
Net operating income 4,100 4,000
Interest expense 800 800
Net income before taxes 3,300 3,200
Income taxes 1,320 1,280
Net income 1,980 1,920
Dividends to preferred stockholders 60 400
Net income remaining for common stockholders 1,920 1,520
Dividends to common stockholders 450 450
Net income added to retained earnings 1,470 1,070
Retained earnings, beginning of year 32,610 31,540
Retained earnings, end of year $ 34,080 $ 32,610

Required:
Compute the following financial ratios for common stockholders for this year:

1.

Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.)

Price-earnings ratio

2.

Dividend yield ratio. (Round your answer to 1 decimal place. Omit the "%" sign in your response.)

Dividend yield ratio %

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