For Year 2,Weston Corporation Reported After-Tax Net Income of $1,200,000

question 90

Essay

For Year 2,Weston Corporation reported after-tax net income of $1,200,000.During the year,the number of outstanding shares of 6% $100 par preferred stock remained constant at 5,000,and 500,000 shares of common stock were outstanding all year.The company's total stockholders' equity at December 31,Year 2,was $12,500,000.Weston's common stock was selling at $38 per share at the end of the year.All dividends for the year were paid,including a dividend of $2.50 per share to common stockholders.
Required:
Compute the following:
(a)Earnings per share (Round your answer to the nearest cent.)
(b)Book value per share of common stock
(c)Price-earnings ratio (Round your answer to one decimal place.)
(d)Dividend yield (Round your answer to one decimal place.)

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Definitions:

Incorporated NFP Organizations

Nonprofit organizations that have undergone the process of incorporation, granting them legal identity separate from their members or directors.

Share Capital

The total value of a company's shares that it has issued to shareholders, representing the funding a company has received from shareholders in exchange for shares.

NFP Organizations

Not-for-Profit Organizations; entities that operate for purposes other than generating profit, focusing instead on social, educational, or charitable objectives.

Deferred Contribution

Contributions or payments postponed to a future date, often used in the context of retirement savings plans or deferred compensation agreements.