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Exercise 16-6 (Algo) Financial Ratios for Assessing Market Performance [LO16-6] Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31

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Exercise 16-6 (Algo) Financial Ratios for Assessing Market Performance [LO16-6] 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 850,000 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 $20.50. All of the company's sales are on account. Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Totat liabilities Stockholders ' equity: Common stock Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity \begin{tabular}{rr} $10,000 & $8,550 \\ 700 & 950 \\ 350 & 350 \\ \hline 11,050 & 9,850 \end{tabular} 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 \begin{tabular}{rr} This Year & Last Year \\ $84,000 & $79,000 \\ 54,500 & 50,500 \\ \hline 29,500 & 28,500 \\ \hline & \\ 9,000 & 8,500 \\ 12,500 & 11,500 \\ \hline 21,500 & 20,000 \\ \hline 8,000 & 8,500 \end{tabular} Required: Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places.) 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.) Answer is complete but not entirely correct. Required: Compute the following financial data for this year: 1. Earnings per share. (Round your answer to 2 decimal places?) 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.) Answer is complete but not entirely correct

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