Problem
Earnings per Share, Price-Earnings Ratio, Dividend Yield
The following information was taken from the financial statements of Finn Resources Inc. for December 31 of the current fiscal year:
Common stock, $45 par value (no change during the year) $14,850,000
Preferred $8 stock, $100 par (no change during the year) 4,000,000
The net income was $782,000 and the declared dividends on the common stock were $95,700 for the current year. The market price of the common stock is $10.5 per share.
For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places.