Dividends on common stock during Year 2 totaled $50 thousand. The market price o
ID: 2481423 • Letter: D
Question
Dividends on common stock during Year 2 totaled $50 thousand. The market price of common stock at the end of Year 2 was $9.39 per share.
Compute the gross margin percentage for Year 2. (Round your answer to 1 decimal place. Omit the "%" sign in your response.)
Compute the earnings per share (of common stock) for Year 2.(Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Compute the price-earnings ratio for Year 2. (Do not round intermediate calculations. Round your answer to 1 decimal place.)
Compute the dividend payout ratio for Year 2. (Do not round intermediate calculations. Round your answer to 1 decimal place. Omit the "%" sign in your response.)
Compute the dividend yield ratio for Year 2. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Compute the return on total assets for Year 2. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Compute the return on common stockholders' equity for Year 2. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Compute the book value per share for Year 2. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Compute the working capital for Year 2. (Input your answer in thousands of dollars. Omit the "$" sign in your response.)
Compute the current ratio for Year 2. (Round your answer to 2 decimal places.)
Compute the average collection period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to one decimal place.)
Compute the inventory turnover for Year 2. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Compute the average sale period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)
Compute the times interest earned for Year 2. (Round your answer to 2 decimal places.)
Compute the debt-to-equity ratio for Year 2. (Round your answer to 2 decimal places.)
Dividends on common stock during Year 2 totaled $50 thousand. The market price of common stock at the end of Year 2 was $9.39 per share.
Explanation / Answer
Solution:
Note ---Values are in dollars
a) Gross Margin percentage = Gross Margin / Sales x 100 = $507 / $1,360 x 100 = 37.3%
b) Earnings Per Share = ( Net Income – Preferred Dividend ) / No of common stock outstanding = ($140 - $230*10%) / 100 = ($140 - $23) / 100 = $117 / 100 = $1.17
EPS = $1.17
c) Price Earnings Ratio = Market Price of Common Share / Earnings Per Shares = $9.39 / $1.17 = 8
d) Dividend Payout Ratio = Common Stock Dividend Per Share / Earnings Price Per Share x 100 =
Dividend Per Common Stock = $50 / 100 = $0.50
Dividend Payout Ratio = $0.50 / $1.17 x 100 = 42.7%
Please ask separate question for balance part