Use the Following Information to Obtain the Ratios Requested Below

question 168

Essay

Use the following information to obtain the ratios requested below.Where necessary,carry answers to one decimal place.
Dividends per share: $1.14
Market price per share: $54
Net income: $118,000
Stockholders' equity,beginning of year: $500,000
Stockholders' equity,end of year: $530,000
Earnings per share: $1.75
a.Dividends yield = _____________%
b.Return on equity = _____________%
c.Price/earnings (P/E)ratio = __________ times

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Definitions:

Social Norms

Expected standards of conduct within a society that guide the behavior of its members.

Internalize

The process of incorporating the values, attitudes, and norms of a society into one's own belief system.

Conformity

The act of matching attitudes, beliefs, and behaviors to what is considered normal or acceptable in society.

Financial Success

The achievement of financial goals and stability, often measured by wealth, income, and ability to meet personal and family needs.