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:

Value Analysis

A methodical approach to examining the function of goods or services to minimize cost without compromising on quality or performance.

Trial Close

A soft questioning technique used by salespeople during the sales process to gauge a prospect's readiness to buy.

Sales Presentation

A pitch or demonstration given to potential buyers highlighting the benefits and features of a product or service.

Approach Phase

The initial stage in the sales process where the salesperson first contacts the potential customer, aiming to establish rapport and understand customer needs.