IGF Foods Company is a large, primarily domestic, consumer foods company involved in the manufacture, distribution, and sale of a variety of food products. Industry averages are derived from Troy’s The Almanac of Business and Industrial Financial Ratios and Dun and Bradstreet’s Industry Norms and Key Business Ratios. Following are the 2024 and 2023 comparative income statements and balance sheets for IGF. The market price of IGF’s common stock is $47 during 2024. (The financial data we use are from actual financial statements of a well-known corporation, but the company name used in our illustration is fictitious and the numbers and dates have been modified slightly to disguise the company’s identity.)

Some ratios express income, dividends, and market prices on a per share basis. As such, these ratios appeal primarily to common shareholders, particularly when weighing investment possibilities. These ratios focus less on the fundamental soundness of a company and more on its investment characteristics.

Required:
1. Calculate 2024 earnings per share for IGF.
2. Calculate IGF’s 2024 price-earnings ratio.
3. Calculate IGF’s 2024 dividend payout ratio.

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($ in millions) Net sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense IGF FOODS COMPANY Years Ended December 31, 2024 and 2023 2024 Comparative Income Statements Income from operations before tax Income taxes Net income Net income per share Average shares outstanding $6,440 (3,667) 2,773 (1,916) 857 (54) 803 (316) $487 $2.69 181 million 2023 $5,800 (3,389) 2,411 (1,629) 782 (53) 729 (287) $ 442 $ 2.44 181 million