The Amherst Company has net profits of $10 million, sales of $150 million, and 2.5 million shares

Question:

The Amherst Company has net profits of $10 million, sales of $150 million, and 2.5 million shares of outstanding. The company has total assets of $75 million and total stockholders’ equity of $45 million. It pays $1 per share in common dividends, and the stock trades at $20 per share. Given this information, determine the following:
a. Amherst’s EPS
b. Amherst’s book value per share and price-to-book-value ratio
c. The firm’s P/E ratio
d. The company’s net profit margin
e. The stock’s payout ratio and its yield
f. The stock’s PEG ratio, given that the company’s earnings have been growing at an average annual rate of 7.5%
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...