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Dividends on common stock during Year 2 totaled $9 thousand. The market price of common stock at the end of Year 2 was $3.00 per
Dividends on common stock during Year 2 totaled $9 thousand. The market price of common stock at the end of Year 2 was $3.00 per share.
Required:
Compute the following for Year 2:
e. Dividend yield ratio. (Round your "Percentage" answer to 2 decimal places.)
f. Return on total assets. (Do not round intermediate calculations. Round your "Percentage" answer to 2 decimal places.)
g. Return on equity. (Round your "Percentage" answer to 2 decimal places.)
h. Book value per share. (Round your answer to 2 decimal places.)
Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year2 Year1 Assets Current assets: $ 250 420 390 20 1,080 1,360 $2,440 $ 390 440 360 20 1,210 1,540 $2,750 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: $ 360 50 40 450 350 800 $ 390 50 40 480 635 1,115 Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Totalliabilities stockholders' equity: Common stock, $2 par value Additional paid-in capital Retained earnings 200 330 1,110 1,640 $2,440 200 330 1,105 1,635 $2,750 Total stockholders' equity Total 1iabilities & stockholders' equity Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) Cost of goods sold Gross margin Selling and administrative expense Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $1,620 1,050 570 530 40 20 20 $ 14
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