The Following Information Was Available for the Year Ended December

question 21

Essay

The following information was available for the year ended December 31, 2019:
$$\begin{array} { l r } \text { Net income } & \$ 180,000 \\\text { Average total assets } & 2,000,000 \\\text { Dividends per share } & 1.44 \\\text { Earnings per share } & 4.00 \\\text { Market price per share at year-end } & 72.00\end{array}$$ Required:
(a.)Calculate the price/earnings ratio for 2019.
(b.)Calculate the dividend payout ratio for 2019.
(c.)Calculate the dividend yield for 2019.

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Definitions:

Long Period

An extended duration of time, which can span years or even decades, often used in the context of investments or planning.

Isolated Inventor

An individual who develops new ideas or inventions independently, often without the support of an organization.

Inventions

Original devices, methods, or processes developed from the creative mind that have never been made before, offering new solutions.

Idea

A thought or suggestion about a possible course of action, creative concept, or invention.