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	$384,000	$417,400
Accounts receivable, net	1,067,800	776,500
Inventory	735,000	681,000
Other current assets	326,000	247,050
Total current assets	2,512,800	2,121,950
Property, plant, & equipment, net	8,961,160	8,335,650
Total assets	$11,473,960	$10,457,600
Liabilities and Stockholders Equity
Current liabilities	$3,136,000	$2,846,050
Long-term debt	3,702,650	3,892,600
Total liabilities	6,838,650	6,738,650
Preferred stock, $5 par value	50,900	50,900
Common stock, $0.25 par value	135,000	103,850
Retained earnings	4,449,410	3,564,200
Total stockholders equity	4,635,310	3,718,950
Total liabilities and stockholders equity	$11,473,960	$10,457,600

Matthias Medical Comparative Income Statement and Statement of Retained Earnings For the Year
2013	2012
Sales revenue (all on account)	$10,080,000	$9,614,000
Cost of goods sold	4,984,000	5,298,750
Gross profit	5,096,000	4,315,250
Operating expenses	2,840,200	2,634,100
Net operating income	2,255,800	1,681,150
Interest expense	329,000	308,650
Net income before taxes	1,926,800	1,372,500
Income taxes (30%)	578,040	411,750
Net income	$1,348,760	$960,750
Dividends paid
Preferred dividends	29,550	29,550
Common dividends	434,000	475,000
Total dividends paid	463,550	504,550
Net income retained	885,210	456,200
Retained earnings, beginning of year	3,564,200	3,108,000
Retained earnings, end of year	$4,449,410	$3,564,200

Calculate the earnings per share (average of 433,000 shares outstanding for the year) for 2013.(Round answer to 2 decimal places, e.g. 2.55.)

Earning per share

$ per share

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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

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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

%