Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem: Module 4 Textbook Problem 9 Learning Objective: 4-5 Calculate ratios for assessing a company's position in the stock market During Year 3, Rooney Corporation
Problem: Module 4 Textbook Problem 9 Learning Objective: 4-5 Calculate ratios for assessing a company's position in the stock market During Year 3, Rooney Corporation reported after-tax net income of $3,595,000. During the year, the number of shares of stock outstanding remained constant at 9,860 of $100 par, 8 percent preferred stock and 395,000 shares of common stock. The company's total stockholders' equity is $19,700,000 at December 31 , Year 3. Rooney Corporation's common stock was selling at $53 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.90 per share to common stockholders. Required a. Compute the earnings per share. (Round your answer to 2 decimal places.) b. Compute the book value per share of common stock. (Round your answer to 2 decimal places.) c. Compute the price-earnings ratio. (Round intermediate calculations and final answer to 2 decimal places.) d. Compute the dividend yield. (Round your percentage answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started