Rossdale, inc., had additions to retained earnings for the year just ended of $637,000. The firm paid out $70,000 in cash dividends, and it has ending total equity of $7.32 million. If the company currently has 690,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? (do not round intermediate calculations and round your answers to 2 decimal places,
e.G., 32.16.) earnings per share $ dividends per share $ book value per share $ if the stock currently sells for $30.20 per share, what is the market-to-book ratio? The price−earnings ratio? (do not round intermediate calculations and round your answers to 2 decimal places,
e.G., 32.16.) market-to-book ratio times price−earnings ratio times if total sales were $10.62 million, what is the price−sales ratio? (do not round intermediate calculations and round your answer to 2 decimal places,
e.G., 32.16.)

Respuesta :

In order to find Earning per share the below formula will be used:

Earning Per Share=[tex]\frac{Net Income}{Outstanding no. Of Shares}[/tex]

Earnings Per Share=[tex]\frac{637000}{690000}[/tex]

Earning Per Share= $0.923

Dividends Per Share= [tex]\frac{Dividends}{No of Shares}[/tex]

Dividends Per SHare=[tex]\frac{70000}{690000}[/tex]

Dividends Per Share=$.10 Per Share

Book Value Per Share=[tex]\frac{Common Shareholders Equity}{No of Equity Shares}[/tex]

Book Value Per Share=[tex]\frac{7320000}{690000}[/tex]

Book Value per Share=$10.61

Market to Book Ratio=[tex]\frac{Market Price Per Share}{Book Value Per Share}[/tex]

Market to Book Ratio=[tex]\frac{30.2}{10.61}[/tex]

Market to Book Ratio=2.85

Price Earning Ratio=[tex]\frac{Market Value per share}{Earnings per share}[/tex]

Price Earning Ratio=[tex]\frac{30.2}{0.92}[/tex]

Price Earning Ratio=32.83

Price to Sales Ratio=[tex]\frac{Market Price Per share}{Sales per share}[/tex]

Sales Per Share=[tex]\frac{10620000}{690000}[/tex]

Sales Per Share=$15.39

Price to Sales Ratio=[tex]\frac{30.2}{15.39}[/tex]

Price to Sales Ratio=1.96