# Question: Assume the following financial data Short term assets 300 000 Long term assets 500 000

Assume the following financial data:

Short-term assets

$300,000

Long-term assets

500,000

Total assets

$800,000

Short-term debt

$200,000

Long-term debt

168,000

Total liabilities

368,000

Common stock

200,000

Retained earnings

232,000

Total stockholders’ equity

432,000

Total liabilities and stockholders’ equity

$800,000

Total earnings (after-tax)

$ 72,000

Dividends per share

$ 1.44

Stock price

$ 45

Shares outstanding

24,000

a. Compute the P/E ratio (stock price to earnings per share).

b. Compute the book value per share (note that book value equals stockholders’ equity).

c. Compute the ratio of stock price to book value per share.

d. Compute the dividend yield.

e. Compute the payout ratio.

Short-term assets

$300,000

Long-term assets

500,000

Total assets

$800,000

Short-term debt

$200,000

Long-term debt

168,000

Total liabilities

368,000

Common stock

200,000

Retained earnings

232,000

Total stockholders’ equity

432,000

Total liabilities and stockholders’ equity

$800,000

Total earnings (after-tax)

$ 72,000

Dividends per share

$ 1.44

Stock price

$ 45

Shares outstanding

24,000

a. Compute the P/E ratio (stock price to earnings per share).

b. Compute the book value per share (note that book value equals stockholders’ equity).

c. Compute the ratio of stock price to book value per share.

d. Compute the dividend yield.

e. Compute the payout ratio.

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