The Morton Company recently reported net profits after taxes of $14.2 million. I
ID: 2815979 • Letter: T
Question
The Morton Company recently reported net profits after taxes of $14.2 million. It has 4.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The company's stock currently trades at $71 per share.
A) Compute the stock's earnings per share (EPS). Round the answer to two decimal places.
$_______ per share
B) What's the stock's P/E ratio? Round the answer to two decimal places.
$_________ times
C) Determine what the stock's dividend yield would be if it paid $4.62 per share to common stockholders. Round the answer to two decimal places.
____________%
Explanation / Answer
the stock's earnings per share=net income/number of shares
=14.2/4.5
=3.16
the stock's P/E ratio=price/earnings per share
=71/(14.2/4.5)
=22.50
stock's dividend yield=4.62/71=6.51%
the above is answer..