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The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 23,000 Accounts receivable,

The financial statements for Castile Products, Inc., are given below:

Castile Products, Inc. Balance Sheet December 31
Assets
Current assets:
Cash $ 23,000
Accounts receivable, net 230,000
Merchandise inventory 310,000
Prepaid expenses 10,000
Total current assets 573,000
Property and equipment, net 840,000
Total assets $ 1,413,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities $ 220,000
Bonds payable, 10% 370,000
Total liabilities 590,000
Stockholders equity:
Common stock, $10 par value $ 130,000
Retained earnings 693,000
Total stockholders equity 823,000
Total liabilities and equity $ 1,413,000

Castile Products, Inc. Income Statement For the Year Ended December 31
Sales $ 2,160,000
Cost of goods sold 1,240,000
Gross margin 920,000
Selling and administrative expenses 600,000
Net operating income 320,000
Interest expense 37,000
Net income before taxes 283,000
Income taxes (30%) 84,900
Net income $ 198,100

Account balances at the beginning of the year were: accounts receivable, $200,000; and inventory, $330,000. All sales were on account.

Assume that Castile Products, Inc., paid dividends of $3.95 per share during the year. Also assume that the companys common stock had a market price of $65 at the end of the year and there was no change in the number of outstanding shares of common stock during the year.

1.

Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your final percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)

2.

Dividend yield ratio. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)

3.

Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.)

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