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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 $ 6,500 Accounts receivable,

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

Castile Products, Inc. Balance Sheet December 31
Assets
Current assets:
Cash $ 6,500
Accounts receivable, net 35,000
Merchandise inventory 70,000
Prepaid expenses 3,500
Total current assets 115,000
Property and equipment, net 185,000
Total assets $ 300,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities $ 50,000
Bonds payable, 10% 80,000
Total liabilities 130,000
Stockholders equity:
Common stock, $5 par value $ 30,000
Retained earnings 140,000
Total stockholders equity 170,000
Total liabilities and equity $ 300,000
Castile Products, Inc. Income Statement For the Year Ended December 31
Sales $ 420,000
Cost of goods sold 292,500
Gross margin 127,500
Selling and administrative expenses 89,500
Net operating income 38,000
Interest expense 8,000
Net income before taxes 30,000
Income taxes (30%) 9,000
Net income $ 21,000

Account balances at the beginning of the year were: accounts receivable, $25,000; and inventory, $60,000. All sales were on account.

Assume that Castile Products, Inc., paid dividends of $2.10 per share during the year. Also assume that the companys common stock had a market price of $42 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 percentage answer to nearest whole number.)

3. Dividend yield ratio. (Round your percentage answer to nearest whole number.)

4.

Price-earnings ratio. (Round your intermediate calculations to 2 decimal places. Round your answer to nearest whole number.)

5.

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

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