Chapter 11
Financial Statement Analysis
556
AP-14A (
6
)
Freebird Inc. had a net income of $358,400 for the year ended September 30, 2016. The
company does not have any preferred shares and has 113,000 common shares outstanding
for the entire year. During the year, they paid out $60,000 in dividends. Shareholders’equity is
valued at $332,000.
Required
a) Calculate earnings per share.
b) Calculate the dividend payout ratio.
c) Calculate the price earnings ratio assuming the market price is $17 per share.
d) Calculate the book value per common share.
