During Year 3, Blue Ridge Corporation reported after-tax net income of $4,150,000. During the year, the number
Question:
During Year 3, Blue Ridge Corporation reported after-tax net income of $4,150,000. During the year, the number of shares of stock outstanding remained constant at 15,000 of $100 par, 9 percent preferred stock and 400,000 shares of common stock. The company’s total stockholders’ equity is $20,000,000 at December 31, Year 3. Blue Ridge Corporation’s common stock was selling at $80 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.80 per share to common stockholders.
Required
Compute the following by rounding to two decimal points:
a. Earnings per share.
b. Book value per share of common stock.
c. Price-earnings ratio.
d. Dividend yield.
Step by Step Answer:
Survey Of Accounting
ISBN: 9781260575293
6th Edition
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds