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:

Open Systems

A term referring to systems that interact with their environment, exchanging information, materials, or energy.

Value Chain

The sequence of activities carried out by organizations to create valued goods and services to consumers.

Open System Chain

A concept in systems theory referring to the interconnectedness and interaction between a system and its external environment, allowing for exchange of information, energy, and materials.

Production

refers to the process of creating goods and services through the combination of human labor, materials, and technology.