The Ebert Corporation has outstanding 550,000 shares of 9% preferred

The Ebert Corporation has outstanding 550,000 shares of 9% preferred stock with a $100 par value and has issued 12 million shares of $1 par value common stock. The current market price of the common stock is $30 per share, and the latest annual dividend is $2.00 per common share. Common treasury stock consists of 500,000 shares costing $9 million. The company has $150 million of additional paid-in capital, $20 million of retained earnings, and $12 million of investments in affiliated companies at the end of the year. Net income for the current year is $25 million.

Compute the following:

1. Total stockholders’ equity

2. Common stock P-E ratio

3. Common stock dividend-yield percentage

4. Common stock dividend-payout percentage

5. Book value per share of common stock


Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...

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