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Use the Following Information to Obtain the Ratios Requested Below

question 127

Essay

Use the following information to obtain the ratios requested below.Where necessary,carry answers to one decimal place.
Dividends per share: $2.16
Market price per share: $48
Net income: $88,000
Average stockholders' equity: $625,000
Earnings per share: $1.56
a.Dividends yield = _____________%
b.Return on equity = _____________%
c.Price/earnings (P/E)ratio = __________times


Definitions:

Average Expenditure

The average amount of money spent by consumers or firms on a particular good or service.

Monopsony

A market condition where there is only one buyer for many sellers, giving the buyer significant power over prices.

Input Demand

Refers to the demand for production inputs (like labor and raw materials), driven by the demand for the outputs those inputs produce.

Competitive Price

A pricing strategy where the price is set based on what competitors are charging for similar products or services.

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