Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 10-10 (Algo) Financial Ratios for Assessing Market Performance [LO16-6] The financial statements for Castile Products, Incorporated, are given below: Account balances at the beginning

image text in transcribed

image text in transcribed

Exercise 10-10 (Algo) Financial Ratios for Assessing Market Performance [LO16-6] The financial statements for Castile Products, Incorporated, are given below: Account balances at the beginning of the year were: accounts receivable, $170,000; and inventory, $300,000. All sales were on account. Assume that Castile Products, Incorporated, paid dividends of $3.95 per share during the year. Also assume that the company's common stock had a market price of $67 at the end of the year and there was no change in the number of outstanding shares of common stock during the year. Required: Compute financial ratios as follows: 1. Earnings per share. (Round your answer to 2 decimal places.) 2. Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your percentage final answer to 2 decimal places.) 3. Dividend yield ratio. (Round your percentage onswer to 2 decimal places.) 4. Price-earnings ratio. (Round your intermediate colculations and final answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.)

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

Students also viewed these Accounting questions