You decide next to assess the companys stock market performance. Assume that Lydexs stock price at the end of this year is $74 per share and that at the end of last year it was $42. For both this year and last year, compute: (Round your intermediate calculations and final percentage answers to 1 decimal place. i.e., 0.123 should be considered as 12.3%. Round the rest of the intermediate calculations and final answers to 2 decimal places.)

You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the companys financial statements, including comparing Lydexs performance to its major competitors. The companys financial statements for the last two years are as follows:

Lydex Company Comparative Balance Sheet
	This Year		Last Year
Assets
Current assets:
Cash	$	860,000	$	1,100,000
Marketable securities		0		300,000
Accounts receivable, net		2,300,000		1,400,000
Inventory		3,500,000		2,000,000
Prepaid expenses		240,000		180,000
Total current assets		6,900,000		4,980,000
Plant and equipment, net		9,320,000		8,950,000
Total assets	$	16,220,000	$	13,930,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities	$	3,910,000	$	2,780,000
Note payable, 10%		3,600,000		3,000,000
Total liabilities		7,510,000		5,780,000
Stockholders' equity:
Common stock, $75 par value		7,500,000		7,500,000
Retained earnings		1,210,000		650,000
Total stockholders' equity		8,710,000		8,150,000
Total liabilities and stockholders' equity	$	16,220,000	$	13,930,000

Lydex Company Comparative Income Statement and Reconciliation

This Year

Last Year

Sales (all on account)

$

15,760,000

$

12,580,000

Cost of goods sold

12,608,000

9,435,000

Gross margin

3,152,000

3,145,000

Selling and administrative expenses

1,592,000

1,564,000

Net operating income

1,560,000

1,581,000

Interest expense

360,000

300,000

Net income before taxes

1,200,000

1,281,000

Income taxes (30%)

360,000

384,300

Net income

840,000

896,700

Common dividends

280,000

448,350

Net income retained

560,000

448,350

Beginning retained earnings

650,000

201,650

Ending retained earnings

$

1,210,000

$

650,000

To begin your assigment you gather the following financial data and ratios that are typical of companies in Lydex Companys industry:

Current ratio	2.3
Acid-test ratio	1.0
Average collection period	30	days
Average sale period	60	days
Return on assets	8.2	%
Debt-to-equity ratio	.66
Times interest earned ratio	5.8
Price-earnings ratio	10
You decide next to assess the companys stock market performance. Assume that Lydexs stock price at the end of this year is $74 per share and that at the end of last year it was $42. For both this year and last year, compute: (Round your intermediate calculations and final percentage answers to 1 decimal place. i.e., 0.123 should be considered as 12.3%. Round the rest of the intermediate calculations and final answers to 2 decimal places.)

a.	The earnings per share.
b.	The dividend yield ratio.
c.	The dividend payout ratio.
d.	The price-earnings ratio.
e.	The book value per share of common stock.