Tedder Corporation has provided the following financial data (in thousands of dollars):
Net income for Year 2 was $80 thousand. Interest expense was $16 thousand. The tax rate was 30%. Dividends on common stock during Year 2 totaled $40 thousand. Dividends on preferred stock totaled $10 thousand. The market price of common stock at the end of Year 2 was $6.79 per share.
Required:
Compute the following for Year 2:
a. Earnings per share (of common stock).
b. Price-earnings ratio.
c. Dividend payout ratio.
d. Dividend yield ratio.
e. Return on total assets.
f. Return on common stockholders' equity.
g. Book value per share.

Question

Tedder Corporation has provided the following financial data (in thousands of dollars):  
Net income for Year 2 was $80 thousand. Interest expense was $16 thousand. The tax rate was 30%. Dividends on common stock during Year 2 totaled $40 thousand. Dividends on preferred stock totaled $10 thousand. The market price of common stock at the end of Year 2 was $6.79 per share.
Required:
Compute the following for Year 2:
a. Earnings per share (of common stock).
b. Price-earnings ratio.
c. Dividend payout ratio.
d. Dividend yield ratio.
e. Return on total assets.
f. Return on common stockholders' equity.
g. Book value per share.

Quizplus · Accepted Answer

The Answer of Tedder Corporation has provided the following financial data (in thousands of dollars):  
Net income for Year 2 was $80 thousand. Interest expense was $16 thousand. The tax rate was 30%. Dividends on common stock during Year 2 totaled $40 thousand. Dividends on preferred stock totaled $10 thousand. The market price of common stock at the end of Year 2 was $6.79 per share.
Required:
Compute the following for Year 2:
a. Earnings per share (of common stock).
b. Price-earnings ratio.
c. Dividend payout ratio.
d. Dividend yield ratio.
e. Return on total assets.
f. Return on common stockholders' equity.
g. Book value per share.

Tedder Corporation Has Provided the Following Financial Data (In Thousands