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:

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

You decide next to assess the companys stock market performance. Assume that Lydexs stock price at the end of this year is $78 per share and that at the end of last year it was $46. For both this year and last year, compute: (Round your "Percentage" answers to 1 decimal place and other intermediate 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.

\begin{tabular}{lrr} \multicolumn{3}{c}{ Lydex Company } \\ \\ Sales (all on account) & This Year & \\ Cost of goods sold & $15,780,000 & $12,780,000 \\ Gross margin & 12,624,000 & 9,585,000 \\ Selling and administrative expenses & 3,156,000 & 3,195,000 \\ Net operating income & 1,794,000 & 1,572,000 \\ Interest expense & 1,362,000 & 1,623,000 \\ Net income before taxes & 362,000 & 302,000 \\ Income taxes (30\%) & 1,000,000 & 1,321,000 \\ Net income & 300,000 & 396,300 \\ Common dividends & 700,000 & 924,700 \\ Net income retained & 280,000 & 462,350 \\ Beginning retained earnings & 420,000 & 462,350 \\ Ending retained earnings & 910,000 & 447,650 \\ \cline { 2 - 3 } & $1,330,000 & $910,000 \end{tabular} \begin{tabular}{lr} Current ratio & 2.3 \\ Acid-test ratio & 1.0 \\ Average collection period & 30 days \\ Average sale period & 60 days \\ Return on assets & 8.4% \\ Debt-to-equity ratio & 0.7 \\ Times interest earned ratio & 5.7 \\ Price-earnings ratio & 10 \end{tabular}