Exercise 14-6 (Algo) Financial Ratios for Assessing Market Performance [LO14-6] Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 980,000 shares of common stock were outstanding. The Interest rate on the bond payable was 12%, the Income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of this year was $27.00. All of the company's sales are on account. Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 4,568 16,200 $ 5,440 9,150 10,600 8,920 1,980 2,460 33,348 25,970 7,800 7,800 21,000 20,800 28,800 28,600 Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity $ 62,148 $ 11,300 960 480 12,740 8,750 21,490 $ 54,570 $ 9,200 1,600 480 11,280 8,750 20,030 980 980 5,100 5,100 6,080 6,080 34,578 28,460 40,658 34,540 $ 62,148 $ 54,570 Total liabilities and stockholders' equity Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income Dividends to common stockholders Net income added to retained earnings Beginning retained earnings Ending retained earnings Required: Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places.) This Year $ 97,000 Last Year $ 92,000 61,000 57,000 36,000 35,000 10,300 9,800 13,800 12,800 24,100 22,600 11,900 12,400 1,050 1,050 10,850 11,350 4,340 4,540 6,510 6,810 392 784 6,118 28,460 6,826 22,434 $ 34,578 $ 28,460 2. Price-earnings ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 3. Dividend payout ratio. (Round your intermediate calculations and final answer to 2 decimal places.) 4. Dividend yield ratio. (Round your Intermediate calculations and final answer to 2 decimal places.) 5. Book value per share. (Round your answer to 2 decimal places.)