Answered

Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Experience the convenience of getting accurate answers to your questions from a dedicated community of professionals. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

Rossdale, Inc., had additions to retained earnings for the year just ended of $641,000. The firm paid out $50,000 in cash dividends, and it has ending total equity of $7.36 million.
1. If the company currently has 730,000 shares of common stock outstanding, what are:
a. Earnings per share?
b. Dividends per share?
c. Book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
2. lf he stock currently sells or $30.60 per share, what is:
a. the market-to-book ratio?
b. the price earnings ratio?
3. If total sales were $10.66 million, what is the price-sales ratio?

Sagot :

Parrain

Answer:

1. a. Earnings per share:

= Total earnings / No. of shares

= (Addition to retained earnings + Dividends) / No. of shares

= (641,000 + 50,000) / 730,000

= $0.95

b. Dividends per share:

= Dividends / No. of shares

= 50,000 / 730,000

= $0.07

c. Book Value per share:

= Ending total equity / No. of shares

= 7,360,000 / 730,000

= $10.08

2. a. Market to book ratio

= Market price / Book value

= 30.60 / 10.08

= 3.06 times

b. Price - earnings ratio:

= Market price / Earnings per share

= 30.60 / 0.95

= 32.21 times

3. Price - sales ratio

= Market value of equity / Sales

= (30.60 * 730,000 shares) / 10,660,000

= 2.1 times

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.