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Chapter $12$

Financial Planning Exercise $4$

Calculating key stock performance metrics

The Castle Company recently reported net profits after taxes of $$11\mathrm{.}8$ million. It has $3\mathrm{.}5$ million shares of common stock outstanding and pays preferred dividends of $$1$ million a year. The company's stock currently trades at $$36$ per share.

Compute the stock's earnings per share $($EPS$).$ Round the answer to two decimal places.

$

per share

What's the stock's P$/$E ratio? Round the answer to two decimal places.

$

times

Determine what the stock's dividend yield would be if it paid $$2\mathrm{.}45$ per share to common stockholders. Round the answer to two decimal places.

$\%$