Account balances at the beginning of the year were: accounts receivable, $25,000; and inventory, $60,000. All sales were on account. Assume that Castile Products, Inc. , paid dividends of $2. 10 per share during the year. Also assume that the company’s common stock had a market price of $42 at the end of the year and there was no change in the number of outstanding shares of common stock during the year. Required: Compute financial ratios as follows: 1. Earnings per share. (Round your answer to 2 decimal places. ) 2. Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your percentage final answer to nearest whole number (i. E. , 0. 1234 should be entered as 12). ) 3. Dividend yield ratio. (Round your intermediate calculations to 2 decimal places. Round your percentage final answer to nearest whole number (i. E. , 0. 1234 should be entered as 12). ) 4. Price-earnings ratio. (Round your intermediate calculations to 2 decimal places. Round your answer to nearest whole number. ) 5. Book value per share. (Round your answer to 2 decimal places. )

Answers

Answer 1

The Earnings per share is $3.5;  Dividend payout ratio is 60%; Dividend yield ratio is 5% and Price-earnings ratio is 12.

Earnings per share

1. Earnings per share

Number of outstanding shares=Common stock/Par value

Number of outstanding shares=30,000/5

Number of outstanding shares=6,000

Earnings per share=Net income/Number of outstanding shares

Earnings per share=$21,000/6,000

Earnings per share=$3.5

2. Dividend payout ratio

Dividend payout ratio=Dividend per share/Earning per share

Dividend payout ratio=$2.10/$3.5

Dividend payout ratio=0.6×100

Dividend payout ratio=60%

3. Dividend yield ratio

Dividend yield ratio=Dividend per share/Market price per share

Dividend yield ratio=$2.10/$42

Dividend yield ratio=0.05×100

Dividend yield ratio=5%

4. Price-earnings ratio

Price-earnings ratio=Market price per share/Earning per share

Price-earnings ratio=$42/$3.5

Price-earnings ratio=12

Therefore the Earnings per share is $3.5;  Dividend payout ratio is 60%; Dividend yield ratio is 5% and Price-earnings ratio is 12.

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Related Questions

The government plays an important role in keeping private companies accountable and preventing them from causing excessive pollution. In the United States, the federal organization tasked with protecting human and environmental health is the _________________. Group of answer choices

Answers

Environmental Protection Agency is the agency that is tasked with protecting human and environmental health.

What is the role of the environmental agency?

This is a body that is responsible for ensuring that safe environmental practices are followed by all in the nation.

This body is tasked with trying to preserve the environmmnet and also to ensure that it is healthy enough.

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A monopoly firm can sell 150 units of output for $10 per unit. Alternatively, it can sell 151 units of output for $9.98 per unit. The marginal revenue of the 151st unit of output is Group of answer choices -$6.98. -$0.02. $2.45. $6.98.

Answers

If A monopoly firm can sell 150 units of output for $10 per unit. The marginal revenue of the 151st unit of output is $6.98.

Marginal revenue

Using this formula

Marginal revenue=(Number of units×Price per units)-(Alternate Number of units×Price per units)

Let plug in the formula

Marginal revenue=(151 units×$9.98 per units)-(150 units×$10 per units)

Marginal revenue=$1,506.98-$1,500

Marginal revenue=$6.98

Therefore the marginal revenue of the 151st unit of output is $6.98.

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When Annika and Karen use prices that end in 9. They seem to assume that their customers see prices with these endings as substantially lower. This is

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The fact that Annika and Karen use prices that end in 9 to get their customers to see prices as lower is called odd-even pricing.

What is odd-even pricing?

This is a pricing strategy where retailers and suppliers put an odd number such as 9 at the end of a price.

The reason for this is a belief that when people see a price ending with 9, they believe the good is cheaper because it isn't rounded up and so they buy the good.

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The required return on the stock of Moe's Pizza is 12. 5 percent and aftertax required return on the company's debt is 3. 91 percent. The company's market value capital structure consists of 69 percent equity. The company is considering a new project that is less risky than current operations and it feels the risk adjustment factor is minus 1. 8 percent. The tax rate is 35 percent. What is the required return for the new project

Answers

Answer:

The required return on the stock of Moes pizza is 10.4 percent and after tax required return on the company’s debt is 3.28 percent. The company’s market value capital structure consists of 65 percent equity. The company is considering a new project that is less risky than current operations and it feels the risk adjustment factor is minus 1.5 percent. The tax rate is 35 percent.

Country a has a temperate climate and can grow bananas in the spring. it produces 42,000 pounds of bananas per year per growing acre. country b also has a temperate climate and can grow bananas in the summer. it produces 21,000 pounds of bananas per year per growing acre. two countries with similar resources want to grow bananas. which country has an absolute advantage for growing bananas? why does this country have an absolute advantage?

Answers

Country A would have absolute advantage because it produces the most pounds of bananas per year per growing acre.

What is Absolute advantage?

This is defined as the ability to produce more than available competitors in the market.

Country A produces more pounds of bananas per year per growing acre which is why it has an absolute advantage over country B.

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Answer: is Country A and It can produce more bananas.

Explanation:

country A produces more Bannas

When a shareholder contributes appreciated property to an S corporation in a transfer that qualifies under Section 351 and the shareholder receives stock and cash in return, the shareholder will recognize:

Answers

The shareholder will recognize no loss or gain on the transfer that qualifies under the Section 351.

What is provided under Section 351?

The section says no gain or loss shall be recognized if property is transferred to a corporation by one or more persons solely in exchange for stock in such corporation.

Therefore, the shareholder will recognize neither loss or gain on the transfer that qualifies under the Section 351.

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Bobby decides to sell lemonade on a hot summer day. If Bobby sells 25 glasses of lemonade for $5.00 per cup, and his average total cost is $4.40, what are Bobby's economic profits for the day

Answers

Answer:

$ 120.60

Explanation:

25 glasses * $ 5/ glass = 125 dollars gross income

income - expense = profit

125 - 4.40 = 120.60 profit

Economic profit refers to the total revenue earned by a business or an individual, minus all explicit and implicit costs incurred in the production of goods or services.

What are Bobby's economic profits for the day ?

Economic profit refers to the total revenue earned by a business or an individual, minus all explicit and implicit costs incurred in the production of goods or services.

Explicit costs include the expenses incurred by the business in purchasing or leasing inputs, such as labor, raw materials, and equipment. Implicit costs, on the other hand, refer to the opportunity cost of the resources used in production that could have been used for other purposes.

Economic profit is a measure of profitability that takes into account both explicit and implicit costs, and is therefore a more comprehensive measure than accounting profit. If economic profit is positive, the business is generating more value than it is sacrificing, and if it is negative, the business is not covering all its costs.

To calculate Bobby's economic profits, we need to subtract his total costs from his total revenue.

Total revenue = Price per cup x Number of cups sold

Total revenue = $5.00 x 25 cups

Total revenue = $125.00

Total costs = Average total cost per cup x Number of cups sold

Total costs = $4.40 x 25 cups

Total costs = $110.00

Therefore, Bobby's economic profits for the day would be:

Economic profits = Total revenue - Total costs

Economic profits = $125.00 - $110.00

Economic profits = $15.00

Bobby's economic profits for the day would be $15.00.

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While most employees take a job because of the advertised level of pay, many stay with a job because of the ______ associated with it. a. experience rating b. benefits package c. contribution plan d. variable pay

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Most employees take the job based on the salary package written in the job advertisement but many of them will stay in that job due to the experience rating given by other employees about a company.

Option A is the correct answer.

Who is an employee?

An employee is an individual hired by the employer or HR of that company for a particular job vacancy. The hiring is basically done on the basis of the job profile and the work profile of that individual.

An experience rating is the rating given by the employees on their perspectives in a particular company starting from the first day of the job till their exit from that job. It enables other employees to know about the work culture and policies of that company before taking any employment. It can be positive or negative depending on the perspective of an employee.

Therefore, the experience rating can be the reason for staying of an employee in a particular job apart from the salary package.

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A written request to an insurance company to locate the status of an insurance claim is referred to as a/an

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A written request to an insurance company to locate the status of an insurance claim is referred to as a claim status.

What is an insurance company?

An insurance company is a business organization that is established to receive premium from all of its customers (insured) for any losses which may or may not occur, so it can easily use this funds to compensate or indemnify for losses that are incurred by those having higher risk.

In financial accounting, a claim status is a terminology which is used to describe a written request by an insured or other service provider to an insurance company to locate the status of an insurance claim.

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When one has control over a partner's outcomes, no matter what the partner does, one exercises a form of power known as Multiple Choice control over destiny. fate control. mind management. life influence.

Answers

The control of the outcomes of a partner's decisions, and what they do is known as Fate control.

What is fate control?

This is a phenomenon where a person is said to control the outcomes of another person.

They control where the other person goes, what career that person, gets and other important parts of their life. In other words, they control the person's fate and the other person has no free will.

In conclusion, option B is correct.

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Yana works with managers from various locations but does not have the travel budget to conduct her business meetings face-to-face. What technology might be best for Yana when she has to deliver a sensitive message

Answers

The technology that can be used by Yana to deliver a sensitive message without spending any traveling expenses is Video conferencing.

What is technology?

Technology refers to the process of applying scientific knowledge to the practical works of human beings. It states the interaction of people with each other on regular basis.

Video conferencing is an online method of technology that allows a person to have interactions with another person from any part of the world. It involves no cost relating to traveling. The most important is to have a video-based device and a strong internet connection needed for it.

Therefore, Yana can use the technology of video conferencing to impart the sensitive message which incurs no travel costs for her.

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You are considering creating your own startup business and are weighing the advantages and disadvantages of doing so. According to the author, what would be your most important consideration before making the decision

Answers

According to experts, some critical first steps in starting a business include investigating competitors, understanding legal difficulties in our industry, considering our business expenses, being realistic about the risks involved, recognizing timing, and recruiting support.

What is a Startup?

A startup is a business that is still in its early stages of operation. Founders often fund their own companies, and they may seek outside funding before they get off the ground. Finance can be obtained via relatives, venture capital firms, crowdsourcing, and loans.

Startups must also consider their legal structure and the location of their operations. Startups have a high failure rate, but they may also be very intriguing places to work, with great benefits, a focus on innovation, and tremendous learning opportunities.

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The manager of a(n) ___________- center has control over costs, revenue, and investment in operating assets.

Answers

Answer:

The manager of an investment center has control over costs, revenue, and investment in operating assets.

Explanation:

top answer right!!!!

When organizations decide to operate internationally, workforce ______ involves decisions about where and how many employees are needed for each facility. Multiple choice question.

Answers

When organizations decide to operate internationally, workforce planning involves decisions about where and how many employees are needed for each facility. As there is requirement of employees at each level in the company.

What is decision making in planning?

The process by which multiple prospective solutions or alternatives are identified and the most practicable answer or course of action is finalized is referred to as decision-making.

It's an important aspect of the planning process. Choosing the best course of action from a variety of possibilities is the result of decision-making, so that the product get the good position in the marketplace.

Thus, the planning is required in decision making.

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The physical work effort by an employee at work is called a:.

Answers

the physical work effort by an employee at work is called physical labor

The physical work effort by an employee at work is called: Labor.

What is labor?

Labor can be defined as the ability of a person to put in physical effort when preforming or carrying out a tasks.

For a person to earn wages such person must tend to put in effort as labor help to measure work done during production  or when carrying out a task.

Therefore the physical work effort by an employee at work is called: Labor.

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A company has filed a registration statement with the SEC that uses a method that is only available to seasoned issuers. This registration statement is good for:

Answers

A company that filed a registration statement with the SEC, which uses method that is only available to seasoned issuers is valid for 3 years.

What is securities and exchange commission (SEC)?

Securities and exchange commission refers to a government agency that is responsible for enforcing laws at the federal level inorder to protect Americas who deals in securities market.

This government agency protects:

Investors, Provides dataRegulates the marketFacilitate capital formation.

Hence, a company who filed a registration statement with the SEC that uses a method that is only available to seasoned issuers. This registration statement is good for 3 years

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Suppose the Fed announces that it is raising its target interest rate by 75 basis points, or 0.75 percentage point. To do this, the Fed will use open-market operations to

Answers

The Fed will use open market operations to decrease the supply of money by selling bonds to the public

What is open-market operations?

Open market operations are one of the tools that the Fed uses to regulate the supply of money and credit in the economy.

It entails buying or selling of securities in the market to either increase or decrease the amount of money in circulation. Open market operations can be used for either expansionary or contractionary policies.

Hence, the Fed will use open market operations to decrease the supply of money by selling bonds to the public.

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________ is the conflict-handling style in which both parties give up something to gain something.

Answers

Compromising is the conflict-handling style in which both parties give up something to gain something.

What is the meaning of compromising?

compromise with someone is when you reach an agreement with them and you later give up on something that you originally wanted.

Therefore, Compromising is the conflict-handling style in which both parties give up on something.

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A manufacturing company has units to produce of 940 units for the month. Each unit requires 3.5 hours of labor to produce. The cost of direct labor is $15 per hour. The total cost of direct labor for the month will be $

Answers

Answer:$49,350

Explanation:

The total cost of direct labor for the month will be:= 940 units × 3.5 × $15= $49,350

At what age can you legally start working to help earn an income in the united states?.

Answers

Answer:

14 years old

Explanation:

As a general rule, the FLSA sets 14 years old as the minimum age for employment, and limits the number of hours worked by minors under the age of 16.

When a company creates an ad that uses a dolphin to represent smooth skin and a crocodile to represent dry, rough skin, they are focusing on the ____________ stage of the communication process.

Answers

The company is making a focus on the encoding stage of the communication process.

What is Advertising?

This refers to the creation of awareness for a certain product or services to get customers and also to make sales.

Hence, we can see that based on the knowledge of encoding communication, this involves the sending of a message from a source in which thoughts are put in symbolic form.

We can see that with the use of a dolphin to represent smooth skin and a crocodile to represent dry, rough skin, they are focusing on the encoding stage of the communication process.

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Your company is about to begin litigation, and you need to gather information. You need to get emails, memos, invoices, and other electronic documents from employees. You'd also like to get printed, physical copies of documents. Which tool would you use to gather this information

Answers

Assuming you like to get printed, physical copies of documents. The tool  you would use to gather this information is legal hold.

What is legal hold?

A legal hold can use to notify employees that they should not delete important information or relevent document that may be needed during legal proceeding or when taking legal action.

This legal hold is often use to preserve important document so as to prevent losing the relevant information.

Therefore the tool  you would use to gather this information is legal hold.

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Ben & Jerry's ice cream puts messages on their ice cream containers in support of family dairies in Vermont. Ben & Jerry's also strongly supports local farmers and sources its supplies locally. Corporations like Ben & Jerry's use _______ to express their views on controversial issues.

Answers

Corporations like Ben & Jerry's use A. advocacy advertising to express their views on controversial issues.

What is advocacy advertising?

Advocacy advertising is done when marketing is used to support a particular message or cause.

Advocacy advertising is unlike commercial advertising because it is undertaken in the group or public interest.

Advocacy advertising may not typically promote a product or service but a social cause.

Answer Options:

A. advocacy advertising

B. product advertising

C. pioneering advertising

D. competitive advertising

Thus, Corporations like Ben & Jerry's use A. advocacy advertising to express their views on controversial issues.

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Which scenario most strongly indicates that workplace rules will have to be changed to resolve the conflict

Answers

The scenario that show workplace rules need to be changed is Workers voting to disband their union because they feel that it has not adequately represent their interest.

What is a workplace?

A workplace is a designated location or place where employees of and employer work or a place where workers perform their designated duties.

Therefore, The scenario that indicate workplace rules need to be changed to resolve conflict is Workers voting to disband their union because they feel that it has not adequately represent their interest.

The question is incomplete are the options were not given.

Here are the options from another website.

A lack of deadlines for research staff, preventing other staff members from getting information in a timely fashionLine workers and executives not eating together at lunch, except for onescheduled day each monthAn employee threatening to quit, because he did not get a raise that he hadcounted on and believed he deservedWorkers voting to disband their union because they feel that it has not adequately represent their interest.

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Which resource providers lend financial resources to a business with the expectation of repayment with interest?.

Answers

Creditors are the resource providers who lend financial resources to a business with the expectation of repayment with interest.

What do you know about Creditors?

A creditor is a party (individual or institution) that extends a loan by giving another company a loan that is intended to be repaid in the future.

A business that provides goods or services and does not want to be paid immediately is also a creditor, as the client owes the money for services already rendered.

Thus, Creditors are the resource providers who lend financial resources to a business with the expectation of repayment with interest.

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Retailing includes all activities involved in selling, renting, and providing product and services Blank______.

Answers

Retailing includes all activities involved in selling, renting, and providing product and services to ultimate consumers.

What is retail?

It should be noted that retail simply means the sale of goods and services to ensure that the demand of the public are met.

In this case, retailing includes all activities involved in selling, renting, and providing product and services to ultimate consumers.

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________ is the process of improving an individual's productivity through more efficient use of time.

Answers

Time management can be defined as the  process of improving an individual's productivity through more efficient use of time.

What is time management?

This is the concept that has to do with the efficient use of time. It has to do with  the ability to allocate activities at a particular time period.

Thye concept of time management is very useful in the business process and in other spheres of life.

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Over- or underapplied variable manufacturing overhead is equal to the variable overhead ______ variance.

Answers

Answer: Spending

Explanation:

Dave bought a rental property for $200,000 cash. One year later, he sold it for $240,000. Suppose Dave invested only $20,000 of his own money and borrowed $180,000 interest-free from his rich father. What was his return on investment

Answers

Assuming he invested only $20,000 of his own money and borrowed $180,000. His return on investment is: 200% .

Return on investment

Using this formula

Return on investment = Profit / Initial investment

Return on investment= ( Selling price − Purchase price) / Investment

Let plug in the formula

Return on investment= ($240,000 − $200,000) / $20,000 × 100

Return on investment=200%

Therefore his return on investment is: 200% .

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A chart that is recommended as an alternative to a pie chart is a _________.

Answers

Answer:simple bar chart or stacked chart

Explanation:

many or any chart for that matter can be an alternative to a pie chart but these specific ones can to my mind first

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