Calculating key financial ratios. Selected financial information about Backpacking Resources, Inc., is as follows: Total assets.................................................$20,000,000 Total

Question:

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 outstanding .........500,000 shares
Current market price of ......................$50.00 a share
Annual dividends ..............................$2.50 a share
Using the company's financial information, compute the following:
a. The stock's yield
b. Book value per share
c. EPS
d. P/E ratio
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...