Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mihok Corporation has provided the following financial data: Year 2 Year 1 Stockholders' equity: Common stock, $3 par value $300,000 $300,000 Additional paid-in capitalcommon stock

Mihok Corporation has provided the following financial data:

Year 2 Year 1

Stockholders' equity:

Common stock, $3 par value $300,000 $300,000

Additional paid-in capitalcommon stock 100,000 100,000

Retained earnings 375,000 370,000

Total stockholders' equity $775,000 $770,000

Income Statement

for the Year Ended December 31, Year 2

Sales $1,380,000

Cost of goods sold 780,000

Gross margin 600,000

Operating expenses 567,714

Net operating income 32,286

Interest expense 18,000

Net income before taxes 14,286

Income taxes (30%) 4,286

Net income $10,000

Dividends on common stock during Year 2 totaled $5,000. The market price of common stock at the end of Year 2 was $0.97 per share.

Required:

What is the company's earnings per share for Year 2?

What is the company's price-earnings ratio for Year 2?

What is the company's dividend payout ratio for Year 2?

What is the company's dividend yield ratio for Year 2?

What is the company's book value per share at the end of Year 2?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An Integrated Statements Approach

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

2nd Edition

324312113, 978-0324312119

Students also viewed these Accounting questions