Determine the dividend yield for the common stock

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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.

Reference no: EM132691663

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