Refer to the data in Exercise 16-2 for Weller Corporation.

Required:

Compute the following financial data for this year:

1. Earnings per share.

2. Price-earnings ratio.

3. Dividend payout ratio.

4. Dividend yield ratio.

5. Book value per share.

Data From Exercise 16-2:

Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company’s common stock at the end of this year was $18. All of the company’s sales are on account.

Weller Corporation
Comparative Income Statement and Reconciliation
(dollars in thousands)

Transcribed Image Text:

Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash ..... $ 1,280 $ 1,560 Accounts receivable, net 12,300 9,100 Inventory 9,700 8,200 Prepaid expenses 1,800 2,100 Total current assets 25,080 20,960 Property and equipment: Land 6,000 6,000 Buildings and equipment, net 19,200 19,000 Total property and equipment 25,200 25,000 Total assets $50,280 $45,960 Liabilities and Stockholders' Equity Current liabilities: Accounts payable... $ 9,500 $ 8,300 Accrued liabilities 600 700 Notes payable, short term 300 300 Total current liabilities 10,400 9,300 Long-term liabilities: Bonds payable 5,000 5,000 Total liabilities 15,400 14,300 Stockholders' equity: Common stock .. 800 800 Additional paid-in capital 4,200 4,200 Total paid-in capital Retained earnings 5,000 5,000 29,880 26,660 ... .. Total stockholders' equity 34,880 31,660