Question

The financial statements for Castile Products, Inc., are givenbelow:

Castile Products, Inc. Balance Sheet December 31
Assets
Current assets:
Cash				$	20,000
Accounts receivable, net					200,000
Merchandise inventory					340,000
Prepaid expenses					9,000
Total currentassets					569,000
Property andequipment, net					840,000
Total assets				$	1,409,000
Liabilitiesand Stockholders' Equity
Liabilities:
Current liabilities				$	260,000
Bonds payable, 11%					350,000
Totalliabilities					610,000
Stockholders’equity:
Common stock, $10 par value				$	160,000
Retained earnings					639,000
Total stockholders’equity					799,000
Total liabilitiesand equity				$	1,409,000

Castile Products, Inc. Income Statement For the Year Ended December 31
Sales	$	2,130,000
Cost of goodssold		1,190,000
Gross margin		940,000
Selling andadministrative expenses		620,000
Net operatingincome		320,000
Interestexpense		38,500
Net income beforetaxes		281,500
Income taxes(30%)		84,450
Net income	$	197,050

Account balances at the beginningof the year were: accounts receivable, $180,000; and inventory,$290,000. All sales were on account.

Assume that Castile Products, Inc., paid dividends of $4.15 pershare during the year. Also assume that the company’s common stockhad a market price of $60 at the end of the year and there was nochange in the number of outstanding shares of common stock duringthe year.

Required:

Compute financial ratios asfollows:

1.	Earnings per share. (Round your answer to 2 decimalplaces.)

2.	Dividend payout ratio. (Round your intermediatecalculations to 2 decimal places. Round your final percentageanswer to 1 decimal place (i.e., 0.1234 should be considered as12.3%).)

3.	Dividend yield ratio. (Round your percentage answer to 1decimal place (i.e., 0.1234 should be considered as12.3%).)

4.	Price-earnings ratio. (Round your intermediatecalculations to 2 decimal places and final answerto1 decimal place.)

5.	Book value per share. (Round your answer to 2 decimalplaces.)