Discussion Post: Financial Management
ABC Company had addition to retained earnings for the current fiscal year just ended of $395,000. The firm paid out $195,000 in cash dividend, and it has ending total equity of $5.3 million. The company currently has 170,000 shares of common stock outstanding. Answer the following questions:
• What are earnings per share (E/PS)?
• Dividends per share?
• Book value of share?
• If the stock currently sells for $64 per share, what is the market-to-book ratio?
• The price to earnings ratio (P/E)?
• The company had sales of $5.15 million, what is the price to sales ratio (P/S)?
• Finally, explain the implication of P/E ratio for different types of investors.
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.