Let's break down the questions and calculations step by step using the information provided in the image: --- ### **Income Statement Highlights:** - **Net Income:** $127,480 - **Shares Outstanding:** 44,000 - **Market Price per Share (end of 2024):** $27 - **Dividends:** $37,400 - **Earnings Growth Rate (next year):** 10% --- ### **a. Price-Earnings (P/E) Ratio** #### **Formula:** \[ \text{P/E Ratio} = \frac{\text{Market Price per Share}}{\text{Earnings per Share}} \] #### **Earnings per Share (EPS):** \[ \text{EPS} = \frac{\text{Net Income}}{\text{Shares Outstanding}} = \frac{127,480}{44,000} = 2.90 \] #### **P/E Ratio:** \[ \text{P/E Ratio} = \frac{27}{2.90} = 9.31 \] --- ### **b. Book Value per Share** #### **Formula:** \[ \text{Book Value per Share} = \frac{\text{Total Stockholders' Equity}}{\text{Shares Outstanding}} \] (We **don't have Total Stockholders' Equity** in the information provided, so you can't calculate this with the current data.) --- ### **c. Dividend Yield** #### **Formula:** \[ \text{Dividend per Share} = \frac{37,400}{44,000} = 0.85 \] \[ \text{Dividend Yield} = \frac{\text{Dividend per Share}}{\text{Market Price per Share}} = \frac{0.85}{27} = 0.0315 = 3.15\% \] --- ### **d. PEG Ratio** #### **Formula:** \[ \text{PEG Ratio} = \frac{\text{P/E Ratio}}{\text{Earnings Growth Rate}} \] - **Earnings Growth Rate:** 10% (as a percentage, not a decimal) \[ \text{PEG Ratio} = \frac{9.31}{10} = 0.93 \] --- ## **Summary Table** | a. Price-earnings ratio | b. Book value per share | c. Dividend yield | d. PEG ratio | |-------------------------|------------------------|-------------------|--------------| | 9.31 | (Not enough info) | 3.15% | 0.93 | --- **If you get the stockholders' equity value, I can help you calculate the book value per share as well!**