The financial statements for Castile Products, Inc., are given below:
Castile Products, Inc.Balance sheetDecember 31
AssetsCurrent Assets: Cash Accounts Receivable, net Merchandise Inventory Prepaid ExpensesTotal Current AssetsProperty and Equipment, netTotal AssetsLiabilities and Stockholders’ EquityLiabilities: Current Liabilities Bonds Payable, 10%Total LiabilitiesStockholder’s Equity:Common Stock, $5 par value Retained EarningsTotal Stockholder’s EquityTotal Liabilities and Stockholder’s Equity$ 6,50035,00070,0003,500115,000185,000$ 300,000$ 50,00080,000$ 130,000$ 30,000140,000$ 170,000$ 300,000
Castile Products, Inc.Income StatementFor the Year Ended December 31
SalesCost of Goods SoldGross MarginSelling and Administrative ExpensesNet Operating IncomeInterest ExpenseNet Income Before TaxesIncome Taxes (30%)Net Income $ 420,000292,500$ 127,50089,500$ 38,0008,000$ 30,0009,000 $ 21,000
Account balances at the beginning of the year were: accounts receivable, $25,000; and inventory,$60,000. All sales were on account.
Assume that Castile Products, Inc., paid dividends of $2.10 per share during the year. Also assume that the company’s common stock had a market price of$42 at the end of the year and there was no change in the number of outstanding shares of common stock during the year.
Required:
Compute financial ratios as follows:
- Earnings per share. (Round your answer to 2 decimal places.)
- Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your percentage final answer to nearest whole number (i.e., 0.1234 should be entered as 12).)
- Dividend yield ratio. (Round your intermediate calculations to 2 decimal places. Round your percentage final answer to nearest whole number (i.e., 0.1234 should be entered as 12).)
- Price-earnings ratio. (Round your intermediate calculations to 2 decimal places. Round your answer to nearest whole number.)
- Book value per share. (Round your answer to 2 decimal places.)