Litehouse Incorporated reported the following selected information:

2022 2021

Weighted average number of common shares 75,000 73,500

Net income $450,000 $410,500

Preferred share dividends $50,000 $34,500

Common shareholders equity $3,500,000 $3,300,000

Dividends declared per share $2.50 $2.40

Market price per share $30.00 $32.50

Instructions

Calculate the following ratios for 2022 and 2021 respectively:

(a) Basic earnings per share (2 marks)

(b) Return on common shareholders equity (assume 2020 common shareholders equity of $3,250,000) (2 marks)

(c) Dividend yield (2 marks)

(d) Payout ratio (2 marks)