Recent financial statements for Madison Company follow: ...

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Accounting

Recent financial statements for Madison Company follow:

Madison Company Balance Sheet June 30
Assets
Current assets:
Cash $ 22,000
Accounts receivable, net 250,000
Merchandise inventory 400,000
Prepaid expenses 9,000
Total current assets 681,000
Plant and equipment, net 880,000
Total assets $ 1,561,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities $ 210,000
Bonds payable, 11% 320,000
Total liabilities 530,000
Stockholders equity:
Common stock, $5 par value $ 180,000
Retained earnings 851,000
Total stockholders equity 1,031,000
Total liabilities and stockholders' equity $ 1,561,000

Madison Company Income Statement For the Year Ended June 30
Sales $ 2,220,000
Cost of goods sold 1,200,000
Gross margin 1,020,000
Selling and administrative expenses 650,000
Net operating income 370,000
Interest expense 35,200
Net income before taxes 334,800
Income taxes 100,440
Net income $ 234,360

Account balances at the beginning of the companys fiscal year were: accounts receivable, $160,000; and inventory, $300,000. All sales were on account.

Assume that Madison Company paid dividends of $3.25 per share during the year. Also assume that the companys common stock had a market price of $71.00 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

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