Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 55

Earnings per share, price-earnings ratio, dividend yield
The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year:

The net income was $1,750,000, and the declared dividends on the common stock were $1,125,000 for the current year. The market price of the common stock is $45 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. Round ratios and percentages to one decimal place, except for per-share amounts.