Crabtree, Inc., had additions to retained earnings for the year just ended of $6

Question

Crabtree, 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 $7.30 million. Requirement 1: If the company currently has 670,000 shares of common stock outstanding, what are earnings per share, dividends per share and book value per share?(Do not include the dollar signs ($). 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? (Round your answer to 2 decimal places. Price-sales ratio ???times

Explanation / Answer

Requirement 1: EPS= (80,000+635,000)/670,000 = 1.067 dividends per share= 80,000/670,000= .1194 book value per share= 7.30million/670,000= 10.9 Requirement 2: market-to-book ratio= 30.00 /10.9= 2.753 Price-earnings ratio= 30/1.067= 28.116 Requirement 3: price-sales ratio= 30x670,000 /10.6million= .1896

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