Question
Mihok Corporation has provided the following financial data: Year 2Year 1 Stockholders' equity: Common stock, $3 par value $300,000 $300,000 Additional paid-in capitalcommon stock 100,000
Mihok Corporation has provided the following financial data:
Year 2Year 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 income32,286
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.
- What is the company's earnings per share for Year 2?
- $10,000/Number of stock at $3 = .
- What is the company's price-earnings ratio for Year 2?
- .97 divided by .10 =
- What is the company's dividend payout ratio for Year 2?
- 5000/100,000 = .05/.10 =
- What is the company's dividend yield ratio for Year 2?
- .05/9.7 =
- What is the company's book value per share at the end of Year 2?
- 775,000/100,000 =
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