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HELP Consider the following information about Earl Grey, Inc. Total assets $250 million Total debt $110 million Preferred stock $ 35 million Common stockholders' equity

HELP

Consider the following information about Earl Grey, Inc.

  • Total assets $250 million
  • Total debt $110 million
  • Preferred stock $ 35 million
  • Common stockholders' equity $105 million
  • Net profits after taxes $25.5 million
  • Number of preferred stock outstanding 1.5 million shares
  • Number of common stock outstanding 9 million shares
  • Preferred dividends paid $2.5 per share
  • Common dividends paid $0.70 per share
  • Market price of the preferred stock $32.55 per share
  • Market price of the common stock $26.00 per share

Use the information above to find the following.

  1. The company's book value
  2. Its book value per share
  3. The stock's earnings per share (EPS)
  4. The dividend payout ratio
  5. The dividend yield on the common stock
  6. The dividend yield on the preferred stock

Directions:

  1. You will report the ratios and your analysis in a Word document.
  2. Your analysis should include a discussion of the strengths or weaknesses revealed in each ratio.
  3. All six ratios should be discussed.

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