The financial statements of Castile Products, Inc., are presented below

Productos de Castilla, Inc. Balance Sheet December 31
Assets
Current assets:
Money				$	20,000
Accounts receivable, net					230,000
Merchandise inventory					350,000
Prepaid expenses					7,000
Total current assets					607,000
Property and equipment, net					890,000
total assets				$	1,497,000
Liabilities and Equity
Passive:
current liabilities				$	210,000
Bonds payable, 9%					330,000
Full responsibility					540,000
Equity:
Common Stock, $10 Par Value				$	110,000
Retained earnings					847,000
Equity of total shareholders					957,000
Total liabilities and equity				$	1,497,000

Productos de Castilla, Inc. Statement of Income For the year ended December 31
Sales	$	2,120,000
cost of goods sold		1,200,000
Gross margin		920,000
Selling and administrative expenses		650,000
operating margin		270,000
Interest expenses		29,700
Net income before taxes		240,300
Income taxes (30%)		72,090
Net income	$	168,210

Account balances at the beginning of the year were: accounts receivable, $190,000; and inventory, $290,000. All sales were on account

Assume that Castile Products, Inc. paid dividends of $2.95 per share during the year. Also assume that the company's common shares had a market price of $72 at the end of the year and that there was no change in the number of common shares outstanding during the year.

Required

1.	Earnings per share.

2.	Dividend payment ratio.

3.	Dividend Yield Ratio.

4.	Rate of profit over price.

5.	Book rated for sharing

Answer rating: 100% (QA)

Earnings per share Net income 168210 Number of common shares outstanding 11000010 ... View the full answer