Profitability Ratios

The following information has been gathered for Malette Manufacturing:

Net income	$5,000,000
Interest expense	400,000
Average total assets	60,000,000
Preferred dividends	400,000
Common dividends	$1,200,000
Average common shares outstanding	800,000 shares
Average common stockholders' equity	$20,000,000
Market price per common share	$40

Assume that the firm has no common stock equivalents. The tax rate is 34%.

Required:

1. Compute the return on assets. Round your answer to three decimal places. fill in the blank 1

2. Compute the return on common stockholders' equity. Round your answer to two decimal places. fill in the blank 2

3. Compute the earnings per share. Round your answer to two decimal places. $ fill in the blank 3 per share

4. Compute the price-earnings ratio. Round your answer to two decimal places. fill in the blank 4

5. Compute the dividend yield. Round your answer to four decimal places. fill in the blank 5

6. Compute the dividend payout ratio. Round your answer to two decimal places. fill in the blank 6