Question
Mihok Corporation has provided the following financials data: Stockholders equity: Year 2 Year 1 Common stock, $3 par value..$300,000 $300,000 Additional paid in capital- common
Mihok Corporation has provided the following financials data: Stockholders equity: Year 2 Year 1 Common stock, $3 par value..$300,000 $300,000 Additional paid in capital- common 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 $.97 per share Required: A. What is the companys earnings per share for year 2? B. What is the companys price-earnings ratio for year 2? C. What is the companys dividend payout ratio for year 2? D. What is the companys dividend yield ratio for year 2? E. What is the companys book value per share at the end of year 2?
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