Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

this year is 7 2 $ / share and that at the end of last year it was 4 0 $ . For both this

this year is 72 $ /share and that at the end of last year it was 40$. For both this year and last year , compute :
a. Earnings per share
b. The dividend yield ratio
c. The dividend pay out ratio
d. The price earning ratio . How do investors regard ABC company as compared to other companies in the industry ? Explain
e. The book value per share of common stock . Does the difference between market value per share and book value per share suggest that the stock at its current price is a bargain ?
i need you to calculate and provide me with formulas for calculating the above ratio?
how did reach the below answers Performance of the Stock Market (This Year & Last):
a. Profits per share: $3.5(previous year), $6(current year)
b. The dividend yield ratio is 0.62 last year and 0.5 this year.
c. Dividend Payout Ratio: 50%(last year) and 42.8%(current year)
d. Price-Earnings Ratio: 17.1(last year) versus 12(current year)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microfinance Handbook An Institutional And Financial Perspective

Authors: Joanna Ledgerwood

1st Edition

0821343068, 978-0821343067

More Books

Students also viewed these Finance questions

Question

D How will your group react to this revelation?

Answered: 1 week ago