Matthias Medical manufactures hospital beds and other institutional furniture. The companys comparative balance sheet and income statement for 2012 and 2013 follow.

Matthias Medical Comparative Balance Sheet As of December 31

2013 2012

Assets

Current assets

Cash $365,000 $417,400

Accounts receivable, net 1,066,700 776,450

Inventory 732,000 681,100

Other current assets 338,000 247,050

Total current assets 2,501,700 2,122,000

Property, plant, & equipment, net 8,424,420 8,380,360

Total assets $10,926,120 $10,502,360

Liabilities and Stockholders Equity

Current liabilities $3,147,000 $2,846,100

Long-term debt 3,702,650 3,892,600

Total liabilities 6,849,650 6,738,700

Preferred stock, $5 par value 50,700 50,700

Common stock, $0.25 par value 135,000 103,850

Retained earnings 3,890,770 3,609,110

Total stockholders equity 4,076,470 3,763,660

Total liabilities and stockholders equity $10,926,120 $10,502,360

Matthias Medical Comparative Income Statement and Statement of Retained Earnings For the Year

2013 2012

Sales revenue (all on account) $10,170,000 $9,613,900

Cost of goods sold 5,942,000 5,298,700

Gross profit 4,228,000 4,315,200

Operating expenses 2,840,200 2,634,200

Net operating income 1,387,800 1,681,000

Interest expense 329,000 308,700

Net income before taxes 1,058,800 1,372,300

Income taxes (30%) 317,640 411,690

Net income $741,160 $960,610

Dividends paid

Preferred dividends 29,500 29,500

Common dividends 430,000 484,000

Total dividends paid 459,500 513,500

Net income retained 281,660 447,110

Retained earnings, beginning of year 3,609,110 3,162,000

Retained earnings, end of year $3,890,770 $3,609,110

Calculate the earnings per share (average of 440,000 shares outstanding for the year) for 2013. (Round answer to 2 decimal places, e.g. 2.55.)

Earning per share $ per share

Calculate the price/earnings ratio (market price of $45 at year-end) for 2013. (Round answer to 2 decimal places, e.g. 2.55.)

Price/earnings ratio

Calculate the dividend payout ratio (dividends of $1.04 per common share for the year) for 2013. (Round answer to 2 decimal places, e.g. 2.55%.)

Dividend payout ratio %