Financial statements for the North Mountain Chemical Company are given below. Use this information to answer the questions that follow.

Balance Sheet (values in $ thousands)

Cash $1,250

Accounts receivable 8,000

Inventory 12,000

Current assets 21,250

Fixed and other assets 8,750

Total assets $30,000

Current liabilities $10,000

Long-term debt 8,000

Stockholders equity 12,000

Total liabilities and stockholders equity $30,000

Income Statement (values in $ thousands)

Sales $50,000

Cost of goods sold 25,000

Operating expenses 15,000

Operating profit (EBIT) 10,000

Interest expense 2,500

Taxes 2,500

Net profit $5,000

Dividends paid to

common stockholders $1,250

Other Information for North Mountain

There are 5 million common shares outstanding.

The price of the common stock is $25.

The 5-year growth rate in earnings has been 16%.

Last year, North Mountains PE ratio was 28.

This year, the average PE ratio in the chemical industry is 20.

a. Calculate each of the following ratios for North Mountain. You must show work in the show work column, then put your answer in the Answer column. You must still show work for the two answers that are given to you. Round to two decimal places where necessary. The symbol (%) after a ratio, such as Dividend yield (%), means that your answer must be expressed as a percent.

Ratio	Show work	Answer
EPS		$1.00
PE
PEG
Book value per share
Price-to-book value
Dividends per share		$0.25
Dividend yield (%)
Payout ratio (%)
Current ratio
Accounts receivable turnover
Inventory turnover
Total asset turnover
Debt-equity ratio
Times interest earned
Net profit margin (%)
ROA (%)
ROE (%)

b. Do the PE and PEG ratios cause you to view this stock favorably or unfavorably? Give explanations in terms of both PE and PEG.