Exercise 12-11 Matthias Medical manufactures hospital beds and other institutional furniture. The companys comparative balance sheet and income statement for 2012 and 2013 follow.

Matthias Medical Comparative Balance Sheet As of December 31
2013	2012
Assets
Current assets
Cash	$373,000	$417,400
Accounts receivable, net	1,065,900	776,500
Inventory	748,000	681,000
Other current assets	396,000	247,100
Total current assets	2,582,900	2,122,000
Property, plant, & equipment, net	8,977,605	8,484,895
Total assets	$11,560,505	$10,606,895
Liabilities and Stockholders Equity
Current liabilities	$3,198,000	$2,846,100
Long-term debt	3,702,600	3,892,650
Total liabilities	6,900,600	6,738,750
Preferred stock, $5 par value	57,100	57,100
Common stock, $0.25 par value	100,000	103,900
Retained earnings	4,502,805	3,707,145
Total stockholders equity	4,659,905	3,868,145
Total liabilities and stockholders equity	$11,560,505	$10,606,895

Matthias Medical Comparative Income Statement and Statement of Retained Earnings For the Year
2013	2012
Sales revenue (all on account)	$10,580,000	$9,613,950
Cost of goods sold	5,579,000	5,298,750
Gross profit	5,001,000	4,315,200
Operating expenses	2,840,200	2,634,150
Net operating income	2,160,800	1,681,050
Interest expense	392,000	308,700
Net income before taxes	1,768,800	1,372,350
Income taxes (30%)	530,640	411,705
Net income	$1,238,160	$960,645
Dividends paid
Preferred dividends	29,500	29,500
Common dividends	413,000	417,000
Total dividends paid	442,500	446,500
Net income retained	795,660	514,145
Retained earnings, beginning of year	3,707,145	3,193,000
Retained earnings, end of year	$4,502,805	$3,707,145

Calculate the earnings per share (average of 417,000 shares outstanding for the year) for 2013.(Round answer to 2 decimal places, e.g. 2.55.)

Earning per share

$per share

Calculate the price/earnings ratio (market price of $45 at year-end) for 2013.(Round answer to 2 decimal places, e.g. 2.55.)

Price/earnings ratio

Calculate the dividend payout ratio (dividends of $1.04 per common share for the year) for 2013.(Round answer to 2 decimal places, e.g. 2.55%.)

Dividend payout ratio

%