Answer: See explanation
Step-by-step explanation:
a. What are earnings per share?
Earnings per share:
= (additions to retained earnings+ cash dividends)/140000
= (174000+190000)/140000
= 364000/140000
Earnings per share = $ 2.60
b. What are dividends per share ?
Dividends per share will be:
= Dividend/Number of shares of common stock outstanding
= 190000/140000
= $ 1.36
c. What is the book value per share?
Book value per share will be:
= Ending total equity/Number of shares of common stock outstanding
= 4950000/140000
= $ 35.36
d. If the stock currently sells for $86 per share, what is the market-to-book ratio?
Market-to-book ratio will be:
= Market Value per share/Book Value per share
= 86/35.36
= 2.43
e. What is the price-earnings ratio?
Price-earnings ratio will be:
= Market Value per share/Earnings per share
= 86/2.6
= 33.08
f. If the company had sales of $4.69 million, what is the price-sales ratio?
Price-sales ratio will be the market value per share multiplied by the number of shares of common stock outstanding. This will be:
= (86 × 140000)/4690000
= 2.57 times