Calculating key financial ratios. Selected financial information about Backpacking Resources, Inc., is as follows:
Total assets.................................................$20,000,000
Total liabilities .............................................$8,000,000
Total preferred stock ......................................$3,000,000
Total annual preferred stock dividends ...................$240,000
Net profits after tax....................................... $2,500,000
Number of shares of common stock outstanding .........500,000 shares
Current market price of common stock ......................$50.00 a share
Annual common stock dividends ..............................$2.50 a share
Using the company's financial information, compute the following:
a. The stock's dividend yield
b. Book value per share
c. EPS
d. P/E ratio