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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 $ 21,000 Accounts rec.

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

Castile Products, Inc.

Balance Sheet December 31 Assets

Current assets: Cash $ 21,000

Accounts rec. Net 230,000

Merchandise inv 300,000

Prepaid expenses 7,000

Total current assets 558,000

Property and equip. 880,000

Total assets 1,438,000

Liabilities and Stockholders' Equity Liabilities:

Current liabilities $ 210,000

Bonds payable, 10% 350,000

Total liabilities 560,000

Stockholders equity: Common stock, $10 par val 140,000

Retained earnings 738,000

Total stockholders equ. 878,000

Total liabilities and equ. 1,438,000

Castile Products, Inc. Income Statement For the Year Ended December 31

Sales $ 2,210,000

Cost of goods sold 1,200,000

Gross margin 1,010,000

Selling and adm. exp. 600,000

Net operating income 410,000

Interest expense 35,000

Net income before taxes 375,000

Income taxes (30%) 112,500

Net income $ 262,500

Account balances at the beginning of the year were: accounts receivable, $180,000; and inventory, $330,000. All sales were on account. Assume that Castile Products, Inc., paid dividends of $2.65 per share during the year. Also assume that the companys common stock had a market price of $63 at the end of the year and there was no change in the number of outstanding shares of common stock during the year.

Required: Compute financial ratios as follows: 1. Earnings per share. (Round your answer to 2 decimal places.)

2. 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%).)

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

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

5. Book value per share. (Round your answer to 2 decimal places.)

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