Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

EPS, P/E Ratio, and Dividend isto The Stockholders' Equity section of the balance sheet for Cooperstown Corp. at the end of 2017 appears as follows:

image text in transcribed
image text in transcribed
EPS, P/E Ratio, and Dividend isto The Stockholders' Equity section of the balance sheet for Cooperstown Corp. at the end of 2017 appears as follows: 9, $100 par, cumulative preferred stock, 200,000 shares authortred, 50,000 shares issued and outstanding $5,000,000 Additional paid-in capital on preferred 2,500,000 Common stock, Spar, 500,000 shares authorized, 400,000 2,000,000 shares issued and outstanding Additional paid-in capital on common 18,000,000 Retained earnings 37,500,000 Total socieholders' equity $65,000,000 Net Income for the year was 51,280,000. Dividends were declared and paid on the preferred shares during the year, and a quarterly dividend of $9.50 per hare was declared and paid each quarter on the common shares. The closing market price for the common shares on December 31, 2017, was $22.25 per share Required: 1. Compute the following rities for the common stock When required, round earnings per share and price/earnings ratie answers to two decimal places. For dividend payout and dividend yield ratios, round raw criculations to 4 decimal places, but enter each answer as a percentage to two decimal places for example, 17856 rounds to 1786 and would be entered as 17.06, indicating 17.56% a. Earnings per share 2.3875 X b. Price/earnings ratio 10.7 X to 1 c. Dividend payout ratio 92.15 X d. Dividend yield ratio 0.0861 X 2. Before recommending the stock of Cooperstown to a client, as a financial adviser. you would like to know a future earnings growth EPS, P/E Ratio, and Dividend Ratios The Stockholders' Equity section of the balance sheet for Cooperstown Corp. at the end of 2017 appears as follows: 8%, $100 par, cumulative preferred stock, 200,000 shares authorized, 50,000 shares issued and outstanding $5,000,000 Additional pald-in capital on preferred 2,500,000 Common stock, $5 par, 500,000 shares authorized, 400,000 2,000,000 shares issued and outstanding Additional paid-in capital on common 18,000,000 Retained earnings 37,500,000 Totud stockholders' equity $65,000,000 Net Income for the year was $1,280,000. Dividends were declared and paid on the preferred shares during the year, and a quarterly dividend of $0.50 per share was declared and paid each quarter on the common shares. The closing market price for the common shares on December 31, 2017, was $22.25 per share Required: 1. Compute the following ratios for the common stock: When required, round carings per share and price/earnings ratio answers to two decimal places. For dividend payout and dividend yield ratios, round raw calculations to 4 decimal places, but enter each answer as a percentage to two decimal places: for example, 17856 rounds to 1786 and would be entered as 17.56, indicating 17.86%. a. Earnings per share $ 2.3875 X b. Price/eamings ratio 10.7 X to 1 Dividend payout ratio 92.18 X d. Dividend yield ratio 0.0861 X 2. Before recommending the stock of Cooperstown to a client, as a financial adviser, you would like to know a future earnings growth

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles Volume 1 And Volume 2

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

9th Canadian Edition

1119786649, 978-1119786641

More Books

Students also viewed these Accounting questions

Question

Understand developments in knowledge creation and management

Answered: 1 week ago

Question

Explain key ideas of workplace learning

Answered: 1 week ago

Question

Explain how HRD may be implemented

Answered: 1 week ago