Question

Dove, Inc., had additions to retained earnings for the year just ended of $635,000. The firm paid out $80,000 in cash dividends, and it has ending total equity of $7.30 million.

Requirement 1: If the company currently has 670,000 shares of common stock outstanding, what are earnings per share, dividends per share and book value per share? Round your answers to 2 decimal places. Earnings per share $??? Dividends per sahre $??? Book value per share$???

Requirement 2: If the stock currently sells for $30.00 per share, what is the market-to-book ratio and the price-earnings ratio? (Round your answers to 2 decimal places. Market-to-book ratio ???times Price-earnings ratio ???times

Requirement 3: If total sales were $10.60 million, what is the price-sales ratio?

Answer 1

EPS = 1.07

Dividends per share: 0.1194

book value per share: 10.89

P/E ratio 28 years

Market to Book 2.75

Price-sales ratio: 1,90

Step-by-step explanation:

635,000 + 80,000 = 715,000 net income

715,000 income / 670,000 shares = EPS = 1,068656716= 1.07

80,000 / 670,000 = 0,1194 per share

7,300,000 / 670,000 = 10,895522= 10.89

Price earning ratio: market price / EPS

30/1.07 = 28,037

30/10.89 = 2,75482

total capitalization:

670,000 x $30 = 20,100,000

total revenue 10,600,000

20,100,000 / 10,600,000 = 1,89622