Reference no: EM133114607

Question - The Stockholders' Equity section of the balance sheet for Cooperstown Corp. at the end of 2017 appears as follows:

8%, $100 par, cumulative preferred stock, 200,000 shares authorized, 50,000 shares issued and outstanding $5,000,000

Additional paid-in capital on preferred 2,500,000

Common stock, $5 par, 500,000 shares authorized, 400,000 shares issued and outstanding 2,000,000

Additional paid-in capital on common 18,000,000

Retained earnings 37,500,000

Total stockholders' equity $65,000,000

Net income for the year was $1,235,000. Dividends were declared and paid on the preferred shares during the year, and a quarterly dividend of $0.55 per share was declared and paid each quarter on the common shares. The closing market price for the common shares on December 31, 2017, was $26.15 per share.

Required - Compute the following ratios for the common stock:

When required, round earnings per share and price/earnings ratio answers to two decimal places. For dividend payout and dividend yield ratios, round raw calculations to 4 decimal places, but enter each answer as a percentage to two decimal places; for example, .17856 rounds to .1786 and would be entered as 17.86, indicating 17.86%.

a. Earnings per share

b. Price/earnings ratio

c. Dividend payout ratio

d. Dividend yield ratio