1. The year-end 2016 balance sheet for Brad’s Copy, Inc. lists common stock ($1.20 par value) at $7,620,000 capital surplus at $86,543,000 and retained earnings at $218,546,000. On the 2015 year-end balance sheet, retained earnings is listed as $214,368,000. The firm’s net income in 2016 was $12,500,000. No stock was issued or repurchased in 2016. What were dividends per share paid by the firm in 2016 (rounded to the nearest cent)?
2. The Lunder Company has total assets of $22,542,000, current liabilities of $2,547,000, and long-term liabilities of $7,410,000. The firm has 1,000,000 shares of common stock outstanding. Compute the firm’s book value of equity per share.
3. Referring back to the previous question, if Lunder’s net income equals $1,600,000 and Lunder has a P/E ratio of 15.0 (note that P/E ratio = stock price per share divided by earnings per share), what is the current price of the stock?