The following information is available for Gumball Company:

20XX

Market price per share of common stock $145.00

Diluted Earnings per share of common stock $ 2.85

Basic Earnings per share of common stock $ 2.79

Dividends per share of common stock $ 1.85

Calculate:

1. Price-earnings ratio_________________

2. Dividend payout ratio______________

3. Dividend yield ________________

4. T or F The price/earnings ratio is used to assess the past earnings performance of the firm. (If false, identify and correct the error)