Dividends on common stock during Year 2 totaled $60 thousand. Dividends on prefe
ID: 2348829 • Letter: D
Question
Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $20 thousand. The market price of common stock at the end of Year 2 was $9.57 per share.
44.The gross margin percentage for Year 2 is:
45.The earnings per share of common stock for Year 2 is:
46.The price-earnings ratio for Year 2 is:
47.The dividend payout ratio for Year 2 is:
48.The dividend yield ratio for Year 2 is:
49.The return on total assets for Year 2 is:
**Please show me how you calculated the answer**
Explanation / Answer
I provided the basic formula above my work for each one. I suggest you check to make sure your textbook provides the same formulas as different textbooks use different formulas. These are the one's I tutor to students at my local college for their textbooks. Hope this helps! 44.The gross margin percentage for Year 2 is: Gross profit/Net sales In our case: gross margin/sales 580/1280 = 45.3% 45.The earnings per share of common stock for Year 2 is: Net income – preferred dividends/outstanding common stock 130-20/200 = $.55 46.The price-earnings ratio for Year 2 is: Market price per share/EPS 9.57/.55 = 17.44 47.The dividend payout ratio for Year 2 is: dividends/net income 60/130 = .46 48.The dividend yield ratio for Year 2 is: dividend per share/market price per share (60/200)/9.57 49.The return on total assets for Year 2 is: EBIT/Total assets 202/1390 = 14.5% 50.The return on common stockholders' equity for Year 2 is: EBIT/Common stockholder’s equity 202/(200+110) = 61.2%