Question

Earnings per Share Price Cam u to, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year Common stock. $35 par value no change during the year) $7,000,000 6,000.00 Preferred $10 stock, $200 par na change during the year) The net income was $660,000 and the declared div dends on the common stock were $50,000 for the current year the market price of the green stock is $14.40 per share the cam p er Share to the price emings ratio, (c) the dividends per share and d) the dividend yied If required, round For the common stock, determine your answers to two decimal places a. Earnings per Share b. Price tags Ratio c. Dividends per Share d. Dividend Yield

Answer 1

Calculation Of Earning Per Share
No Of Shares Outstanding = $7000000/ $35 per share
		=200000 Shares
Earning Per Share = Net Income / No Of Share Outstanding
	=$660000 /200000 Shares
	=$3.3 per share
Price Earning Per Share
	= Market Prce Per Share / Earning Per Share
	= $14.40 /3.3
	=4.3636
Dividend Per Share
	= Dividend / No Of Shares Outstanding
	= $50000/200000 shares
	=$0.25 per share
Dividend Yield
	= Dividend / Stock Price *100
	=$0.25 / $14.40
	=1.74%