Question
Monty Inc. had net income for 2020 of $5,760,000. The company had 1,980,000 of common shares outstanding throughout the year. During 2020, Monty paid dividends
Monty Inc. had net income for 2020 of $5,760,000. The company had 1,980,000 of common shares outstanding throughout the year. During 2020, Monty paid dividends on the common shares of $0.13 per share. Average common shareholder equity was $33,660,000, and the market value of the shares on December 31, 2020 was $26 per share. Monty Inc. also had 92,000 shares outstanding of cumulative, $5, no-par value preferred shares. The shares were outstanding for the full year, and dividends had been kept current for the past several years. Calculate the following ratios for Monty Inc.: (Round answers to 2 decimal places, e.g. 25.15 or 25.15%. Round earnings per share to 3 decimal places for intermediate calculations, e.g. 1.253.)
(a) | Rate of return on common shareholders equity | % | |||
(b) | Payout ratio | % | |||
(c) | Price earnings ratio | times | |||
(d) | Book value per share | $ | per share
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