Use the Following Information to Obtain the Ratios Requested Below

question 101

Essay

Use the following information to obtain the ratios requested below. Where necessary, carry answers to one decimal place.
Dividends per share: $.54
Market price per share: $30
Net income: $88,000
Average stockholders' equity: $625,000
Earnings per share: $1.25
a. Dividends yield = _____________%
b. Return on equity = _____________%
c. Price/earnings (P/E) ratio = __________times

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Definitions:

Stationary Time Series

A type of time series data where statistical properties such as mean and variance are constant over time.

Price/Pound

Price per pound is a unit of measurement for cost relative to weight, commonly used to express the cost of goods sold by weight.

Forecast

A prediction or estimate of future events, especially regarding weather or economic conditions.

Seasonal Additive Model

A time series forecasting technique that adds seasonal effects to predict future values.