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,
(b) The price-earnings ratio,
(c) The dividends per share,
(d) The dividend yield. Round to one decimal place, except earnings per share, which should be rounded to two decimal places.

  • CreatedFebruary 28, 2014
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