Question
The following information was taken from the financial statements of KIM Distributors, for December 31 of the current year: Common stock, $5 par value (no
The following information was taken from the financial statements of KIM Distributors, for December 31 of the current year:
Common stock, $5 par value (no change during the year) ..$1,500,000
Preferred $5 stock, $50 par (no change during the year) . 450,000
The net income was $450,000, and the declared dividends on the common stock were $75,000 for the current year. The market price of the common stock is $20 per share.
For the common stock, determine (a) earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and, (d) the dividend yield. Round EPS to two decimal places, and the rest to one decimal place.
a. Earnings per share
b. Price-earnings ratio
c. Dividends per share
d. Dividend yield
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