Question: Problem: Module 4 Textbook Problem 9 Learning Objective: 4.5 Calculate ratios for assessing a company's position in the stock market During Year 3, Benson Corporation
Problem: Module 4 Textbook Problem 9 Learning Objective: 4.5 Calculate ratios for assessing a company's position in the stock market During Year 3, Benson Corporation reported after-tax net income of $3,550,000. During the year, the number of shares of stock outstanding remained constant at 9,720 of $100 par, 9 percent preferred stock and 399,000 shares of cormmon stock. The companys. totai stockhoiders' equity is $20,000,000 at December 31 , Year 3 . Benson Corporation's common stock was selling at $50 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.90 per share to commonstockholders. Required a. Compute the eamings per share (Round your answer to 2 decimol places.) b. Compute the book value per share of common stock. (Round your onswer to 2 decimal ploces.) c. Compute the price-earnings ratio. (Round intermediote calculations and final answer to 2 decimal places.) d. Compute the dividend yield. (Round your percentoge answer to 2 decimal places, (1.e., 0.2345 should be ontered as 23.45 )
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