The following information was available for the year ended December 31, 2019:
$$\begin{array} { l r }
\text { Net income } & \$ 180,000 \
\text { Average total assets } & 2,000,000 \
\text { Dividends per share } & 1.44 \
\text { Earnings per share } & 4.00 \
\text { Market price per share at year-end } & 72.00
\end{array}$$ Required:
(a.)Calculate the price/earnings ratio for 2019.
(b.)Calculate the dividend payout ratio for 2019.
(c.)Calculate the dividend yield for 2019.

Question

The following information was available for the year ended December 31, 2019:
 $$\begin{array} { l r } 
\text { Net income } & \$ 180,000 \
\text { Average total assets } & 2,000,000 \
\text { Dividends per share } & 1.44 \
\text { Earnings per share } & 4.00 \
\text { Market price per share at year-end } & 72.00
\end{array}$$ Required:
(a.)Calculate the price/earnings ratio for 2019.
(b.)Calculate the dividend payout ratio for 2019.
(c.)Calculate the dividend yield for 2019.

Quizplus · Accepted Answer

The Answer of The following information was available for the year ended December 31, 2019:
 $$\begin{array} { l r } 
\text { Net income } & \$ 180,000 \
\text { Average total assets } & 2,000,000 \
\text { Dividends per share } & 1.44 \
\text { Earnings per share } & 4.00 \
\text { Market price per share at year-end } & 72.00
\end{array}$$ Required:
(a.)Calculate the price/earnings ratio for 2019.
(b.)Calculate the dividend payout ratio for 2019.
(c.)Calculate the dividend yield for 2019.

The Following Information Was Available for the Year Ended December