Question
During Year 3, Rooney Corporation reported after-tax net income of $3,635,000. During the year, the number of shares of stock outstanding remained constant at 9,780
During Year 3, Rooney Corporation reported after-tax net income of $3,635,000. During the year, the number of shares of stock outstanding remained constant at 9,780 of $100 par, 9 percent preferred stock and 397,000 shares of common stock. The companys total stockholders equity is $19,600,000 at December 31, Year 3. Rooney Corporations common stock was selling at $55 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.60 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 final 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).)
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