Consider the following information about Truly Good Coffee, Inc. Total assets .................. $240 million Total debt .................

Question:

Consider the following information about Truly Good Coffee, Inc.
Total assets .................. $240 million
Total debt ................. $115 million
Preferred stock ............... $ 25 million
Common stockholders’ equity ......... $100 million
Net profits after taxes ............. $22.5 million
Number of preferred stock outstanding ...... 1 million shares
Number of outstanding ....... 10 million shares
Preferred dividends paid ........... $2 per share
Common dividends paid ........... $0.75 per share
Market price of the preferred stock ....... $30.75 per share
Market price of the ........ $25.00 per share
Use the information above to find the following.
a. The company’s book value
b. Its book value per share
c. The stock’s earnings per share (EPS)
d. The payout ratio
e. The yield on the The yield on the preferred stock
Common Stock
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