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The Foundational 15 [LO14-2, LO14-3, LO14-4, LO14-5, LO14-6]

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Markus Companys common stock sold for $2.75 per share at the end of this year. The company paid a common stock dividend of $0.55 per share this year. It also provided the following data excerpts from this years financial statements:

	Ending Balance		Beginning Balance
Cash	$	35,000	$	30,000
Accounts receivable	$	60,000	$	50,000
Inventory	$	55,000	$	60,000
Current assets	$	150,000	$	140,000
Total assets	$	450,000	$	460,000
Current liabilities	$	60,000	$	40,000
Total liabilities	$	130,000	$	120,000
Common stock, $1 par value	$	120,000	$	120,000
Total stockholders equity	$	320,000	$	340,000
Total liabilities and stockholders equity	$	450,000	$	460,000

	This Year
Sales (all on account)	$	700,000
Cost of goods sold	$	400,000
Gross margin	$	300,000
Net operating income	$	140,000
Interest expense	$	8,000
Net income	$	92,400

1. What is the earnings per share? (Round your answer to 2 decimal places.)

2. What is the price-earnings ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

3. What is the dividend payout ratio and the dividend yield ratio? (Do not round intermediate calculations. Round your answer to the nearest whole percentage place (i.e., 0.1234 should be entered as 12).)

4. What is the return on total assets (assuming a 30% tax rate)? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)