Facebook Inc. has a share capital structure as follows:
•3,500,000 ordinary shares with a nominal value of $1 each.
•Dividends declared at 5% of net profits after tax.
•Net profit after tax: $1,750,000
•Annual sales: $20,000,000
•Market price per share: $4.50
Tasks:
1.Compute the dividend yield.
2.Calculate the earnings per share.
3.Determine the price earnings ratio.