Junor Inc.

(Junor) is a publicly traded company. During its year ended July 31, 2015, Junor reported net income of $22,750,000; declared and paid quarterly dividends of $0.08 per share on its 25,000,000 outstanding common shares; and paid $2,000,000 in preferred dividends. During the year, no shares were issued and none were repurchased from investors. On July 31, 2015, Junor’s share price was $8.75.

Required:

Calculate the following ratios for 2015. Explain and interpret the meaning of each ratio:

a. basic earnings per share for fiscal 2015 b_ price-to-earnings ratio on July 31, 2015

b. dividend payout ratio for fiscal 2015