Question
During 2014, Desny Corporation reported after-tax net income of $3,605,000. During the year, the number of shares of stock outstanding remained constant at 9,580 of
During 2014, Desny Corporation reported after-tax net income of $3,605,000. During the year, the number of shares of stock outstanding remained constant at 9,580 of $100 par, 9 percent preferred stock and 396,000 shares of common stock. The companys total stockholders equity is $19,800,000 at December 31, 2014. Desny Corporations common stock was selling at $52 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.90 per share to common stockholders.
Required
a. Compute the earnings per share. (Round your answer to 2 decimal places.)
b. Compute the book value per share of common stock. (Round your answer to 2 decimal places.)
c. Compute the price-earnings ratio. (Round intermediate calculations and answer to 2 decimal places.)
d. Compute the dividend yield. (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started