Refer to the financial statements for Castile Products, Inc., in Exercise 16-8. In addition to the data in these statements, assume that Castile Products, Inc., paid dividends of $2.10 per share during the year. Also assume that the company’s common stock had a market price of $42 at the end of the year and there was no change in the number of outstanding shares of common stock during the year.

Required:

Compute financial ratios as follows:

1. Earnings per share.

2. Dividend payout ratio.

3. Dividend yield ratio.

4. Price-earnings ratio.

5. Book value per share.

Data From Exercise 16-8:

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

Transcribed Image Text:

This Year Last Year Sales ..... $79,000 $74,000 Cost of goods sold 52,000 48,000 Gross margin ...... 27,000 26,000 Selling and administrative expenses: Selling expenses Administrative expenses 8,500 8,000 12,000 11,000 Total selling and administrative expenses .... 20,500 19,000 Net operating income 6,500 7,000 Interest expense. 600 600 Net income before taxes . 5,900 6,400 Income taxes .. Net income ..... 2,360 2,560 3,540 3,840 Dividends to common stockholders 320 600 Net income added to retained earnings 3,220 3,240 Beginning retained earnings 26,660 23,420 Ending retained earnings $29,880 $26,660 ... ...