Vogelsberg Corporation Has Provided the Following Financial Data: the Company's

question 223

Essay

Vogelsberg Corporation has provided the following financial data: The company's net operating income in Year 2 was $62,308; its interest expense was $12,000; and its net income was $32,700. Dividends on common stock during Year 2 totaled $2,700. The market price of common stock at the end of Year 2 was $6.37 per share.
Required:
a. What is the company's times interest earned for Year 2?
b. What is the company's debt-to-equity ratio at the end of Year 2?
c. What is the company's equity multiplier at the end of Year 2?
d. What is the company's earnings per share for Year 2?
e. What is the company's price-earnings ratio for Year 2?
f. What is the company's dividend payout ratio for Year 2?
g. What is the company's dividend yield ratio for Year 2?
h. What is the company's book value per share at the end of Year 2?

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Definitions:

Interstate Commerce Act

A United States federal law designed to regulate the railroad industry and its monopolistic practices by enforcing fair rates and supervising railroads' activities.

Federal Government

The national government of a federal country that shares sovereignty with its states or provinces, responsible for national defense, foreign policy, and interstate regulations.

Complementary Medicine

A group of diverse medical and health care systems, practices, and products that are not currently considered part of conventional medicine and are used in addition to conventional techniques.

Analgesic Drugs

Drugs that decrease the perception of pain.