The financial statements for Castile Products Inc are given

The financial statements for Castile Products, Inc., are given below:

     Account balances at the beginning of the year were: accounts receivable, $170,000; and inventory, $270,000. All sales were on account.

Assume that Castile Products, Inc., paid dividends of $3.85 per share during the year. Also assume that the company’s common stock had a market price of $67 at the end of the year and there was no change in the number of outstanding shares of common stock during the year.

Earnings per share. (Round your answer to 2 decimal places.)

Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your final percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)

Dividend yield ratio. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)

Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.)

Book value per share. (Round your answer to 2 decimal places.)

Solution

Solution 1:

Earning per share = Net Income / Weighted average outstanding shares

= $271,600 / 28000 = $9.70 per share

Solution 2:

Dividend payout ratio = Dividend per share / Earning per share = $3.85 / $9.70 = 39.7%

Solution 3:

Dividend yield ratio = Dividend per share/ Market price per share = $3.85 / $67 = 5.7%

Solution 4:

Price earning ratio = Market price per share / Earning per share = $67 / $9.70 = 6.9 times

Solution 5:

Book value per share = Shareholder\'s Equity / Nos of outstanding shares

= $905,000 / 28000 = $32.32