Question
The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $20 par (no
The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year:
Common stock, $20 par (no change during the year)$10,000,000Preferred $4 stock, $40 par (no change during the year)2,500,000The net income was $1,750,000 and the declared dividends on the common stock were $1,125,000 for the current year. The market price of the common stock is $45 per share.
For the common stock, determine (a) theearnings per share, (b) the price-earnings ratio, (c) thedividends per share, and (d) the dividend yield. Round to one decimal place, except for dollar amounts which should be rounded to two decimal places.
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