Reference no: EM132691663
Problem - Five measures of solvency or profitability
The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year:
Common stock, $20 par (no change during the year) $10,000,000
Preferred $4 stock, $40 par (no change during the year) 2,500,000
The net income was $1,750,000 and the declared dividends on the common stock were $1,125,000 for the current year. The market price of the common stock is $45 per share.
For the common stock, determine (a) the earnings per share. Round ratios and percentages to one decimal place, except for per-share amounts.
For the common stock, determine (b) the price-earnings ratio. Round ratios and percentages to one decimal place, except for per-share amounts.
For the common stock, determine (c) the dividends per share. Round ratios and percentages to one decimal place, except for per-share amounts.
For the common stock, determine (d) the dividend yield. Round ratios and percentages to one decimal place, except for per-share amounts.