Comparative financial statements for Weller Corporation, a trading company, for the fiscal year ending December 31 are shown below. The company did not issue new common shares during the year. A total of 810,000 common shares were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per common share was $0.80 last year and $0.40 this year. The market value of the company's common stock at the end of the year was $18.50. All company sales are on account.

Weller Corporation Comparative Balance Sheet (dollars in thousands)
	This year			Last year
Assets
Current assets:
Money	ps	2,546		ps	2,770
Accounts receivable, net		12,400			9,150
Inventory		9,750			8,240
Prepaid expenses		1,810			2,120
Total current assets		26,506			22,280
Property and equipment:
Tierra		6,100			6,100
Buildings and equipment, net		19,300			19,100
Total properties and equipment		25,400			25,200
total assets	ps	51,906		ps	47,480
Liabilities and Equity
current liabilities:
Accounts payable	ps	9,600		ps	8,350
Accrued Obligations		620			750
Short-term notes payable		310			310
Total current liabilities		10,530			9,410
Long term passives:
Obligations with the public		6,250			6,250
Full responsibility		16,780			15,660
Equity:
Common actions		810			810
Additional payment in principal		4,250			4,250
Total paid up capital		5,060			5,060
Retained earnings		30,066			26,760
Equity of total shareholders		35,126			31,820
Total liabilities and stockholders' equity	ps	51,906		ps	47,480

Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands)
	This year			Last year
Sales	ps	80.000		ps	75,000
cost of goods sold		52,500			48,500
Gross margin		27,500			26,500
Selling and administration expenses:
selling expenses		8,600			8,100
administrative expenses		12,100			11,100
Total selling and administrative expenses		20,700			19,200
operating margin		6,800			7,300
Interest expenses		750			750
Net income before taxes		6,050			6,550
Income taxes		2,420			2,620
Net Income		3,630			3,930
Dividends to common shareholders		324			648
Net income added to retained earnings		3,306			3,282
Initial retained earnings		26,760			23,478
End of Retained Earnings	ps	30,066		ps	26,760

 Calculate

1. Earnings per share

2. Price-earnings ratio

3. Dividend payment ratio

4. Dividend Yield Ratio

5. Book value per share

Answer rating: 100% (QA)

Earnings per share EPS EPS is calculated by dividing the net income attributable to common shareholders by the number of common shares outstanding Net ... View the full answer