Answer:
(A) $1.97 per share
(B) $0.52 per share
(C) $20.37 per share
(D) 2.26 times
(E) 23.35 times
(F) 1.00
Explanation:
The computation is shown below:
(A) Earning per share = (Net income) ÷ (Number of shares)
where,
Net income = Retained earnings + dividend paid
= $486,000 + $175,000
= $661,000
And, the number of shares are 335,000 shares
Now put these values to the above formula
So, the value would equal to
= ($661,000) ÷ (335,000 shares)
= $1.97 per share
(B) Dividend per share = (Total dividend) ÷ (number of shares)
= ($175,000) ÷ (335,000 shares)
= $0.52 per share
(C) Book value per share = (Total equity) ÷ (number of shares)
= ($6,825,000) ÷ (335,000 shares)
= $20.37 per share
(D) Market to book ratio = (Market price per share) ÷ (book value per share)
= $46 ÷ $20.37
= 2.26 times
(E) Price-earnings ratio = (Market price per share) ÷ (Earning per share)
= $46 ÷ $1.97
= 23.35 times
(F) Price sales ratio = (Market price per share) ÷ (Total sales per share)
where,
Total sales per share = (total sales) ÷ (Number of shares)
= (154,00,000) ÷ (335,000 shares)
= $45.97 per share
So, the price sales ratio = $46 ÷ $45.97 = 1.00
