Question

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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