(Answered) Exercise - financial ratios for assessing market

Accounting

Exercise - Financial Ratios for Assessing Market Performance

Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 800,000 shares of common stock were outstanding. The interest rate on the bond payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of the year was $18. All of the company's sales are on account.

Required: Compute the following financial data for this year:

1. Earnings per share.

2. Price-earnings ratio.

3. Dividend payout ratio.

4. Dividend yield ratio.

5. Book value per share.

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