Chapter 12 Financial Planning Exercise 2 Calculating key financial ratios

Selected financial information about Backpacking Resources, Inc., is as follows:

Total assets	$50,000,000
Total liabilities	$25,000,000
Total preferred stock	$6,000,000
Total annual preferred stock dividends	$600,000
Net profits after tax	$2,500,000
Number of shares of common stock outstanding	800,000 shares
Current market price of common stock	$50.00 a share
Annual common stock dividends	$3.00 a share

Using the company's financial information, compute the following:

Dividend yield. Round the answer to two decimal places. %

Book value per share. Round your answer to the nearest cent. $ per share

Earnings per share. Round your answer to the nearest cent. $ per share

P/E ratio. Round the answer to two decimal places. times