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For 2008, Orchard Corporation reported after-tax net income of $5,800,000. During the year, the number of shares of stock outstanding remained constant at 10,000 of $100 par, 9 percent preferred stock and 400,000 shares of common stock. The company's total stockholders' equity was $23,000,000 at December 31, 2008. Orchard Corporation's common stock was selling at $52 per share at the end of its fiscal year. All dividends for the year had been paid, including $4.80 per share to common stockholders.

Required:

Compute the following:

a. Earnings per share
b. Book value per share of common stock
c. Price-earnings ratio
d. Dividend yield

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9448847

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