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Thunder Road Corporation supplies parts for Indianapolis type race cars. The current market price per share of its common stock is $40. The latest annual

Thunder Road Corporation supplies parts for Indianapolis type race cars. The current market price per share of its common stock is $40. The latest annual report reports net income of $2,225,000 and total common stock equity of $15,000,000. The annual report also listed 1,750,000 shares of common stock outstanding, $3,500,000 In Preferred Stock and the payment of a $3.00 per share common stock dividend and no preferred dividend. Using the information above, calculate: 1) Earnings per share, 2) P/E ratio, 3) Book Value per share, and 4) Dividend Yield

$1.27 / 31.5 / $6.57 / 7 .5%

$1.30 / 29.8 / $6.75 / 7 .7%

$1.25 / 29.6 / $7.55 / 8.0%

$1.26 / 28.7 / $6.98 / 7 .8%

Trekker Ltd. reported the following for 2012: Gross margin, $50,000; Operating income, $35,000; Interest expense, $5,000; Income before taxes, $30,000; Net income, $20,000. The company's number of times interest earned is equal to:

6 times

10 times

4 times.

7 times

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