Recent financial statements for madison company

Question

Recent financial statements for Madison Company follow:

Madison Company Balance Sheet June 30
Assets
Current assets:
Cash				$	22,000
Accounts receivable, net					180,000
Merchandise inventory					370,000
Prepaid expenses					12,000
Total current assets					584,000
Plant and equipment, net					820,000
Total assets				$	1,404,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities				$	290,000
Bonds payable, 10%					330,000
Total liabilities					620,000
Stockholders' equity:
Common stock, $10 par value	$	170,000
Retained earnings		614,000
Total stockholders' equity					784,000
Total liabilities and stockholders' equity				$	1,404,000

Madison Company Income Statement For the Year Ended June 30
Sales	$	2,200,000
Cost of goods sold		1,250,000
Gross margin		950,000
Selling and administrative expenses		660,000
Net operating income		290,000
Interest expense		33,000
Net income before taxes		257,000
Income taxes		77,100
Net income	$	179,900

Account balances at the beginning of the company's fiscal year were: accounts receivable, $230,000; and inventory, $270,000. All sales were on account.

Assume that Madison Company paid dividends of $4.05 per share during the year. Also assume that the company's common stock had a market price of $68.00 per share on June 30 and that there was no change in the number of outstanding shares of common stock during the fiscal year.

Required:

Compute the following:

1.	Earnings per share. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Earnings per share

$

2.	Dividend payout ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.Omit the "%" sign in your response.)

Dividend payout ratio

%

3.	Dividend yield ratio. (Round your answer to 1 decimal place.Omit the "%" sign in your response.)

Dividend yield ratio

%

4.	Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.)

Price-earnings ratio