Question: The following information was taken from the financial statements of 129248

The following information was taken from the financial statements of Royer Medical Inc. for December 31 of the current fiscal year:
Common stock, $5 par value (no change during the year) . . . . . . . . . . . . . . . $1,500,000
Preferred $5 stock, $50 par (no change during the year) . . . . . . . . . . . . . . . . . . . 450,000

The net income was $450,000, and the declared dividends on the common stock were $75,000 for the current year. The market price of the common stock is $20 per share.
For the common stock, determine
(a) The earnings per share,
(b) The price-earnings ratio,
(c) The dividends per share, and
(d) The dividend yield.
Round to one decimal place except earnings per share, which should be rounded to two decimal places.



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  • CreatedJuly 17, 2012
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