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Chapter 12 Financial Planning Exercise 2 Calculating key financial ratios

Selected financial information about Outer Scapes, Inc., is as follows:

Total assets	$25,000,000
Total liabilities	$10,000,000
Total preferred stock	$4,000,000
Total annual preferred stock dividends	$280,000
Net profits after tax	$1,000,000
Number of shares of common stock outstanding	750,000 shares
Current market price of common stock	$53.00 a share
Annual common stock dividends	$1.59 a share

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

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

   %

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

   $ per share

3. EPS. Round your answer to the nearest cent.

   $ per share

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

   times