Dove, Inc., had additions to retained earnings for the year just ended of $634,000. The firm paid out $85,000 in cash dividends, and it has ending total equity of $7.29 million. a. If the company currently has 660,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.) b. If the stock currently sells for $29.90 per share, what is the market-to-book ratio? The price-earnings ratio? (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.) c. If total sales were $10.59 million, what is the price-sales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)
Chinook Industries Inc. is evaluating two capital investment proposals for a retail outlet, each requiring an investment of $150,000 and each with an eight-year life and expected total net cash flows of $240,000. Location 1 is expected to provide equal annual net cash flows of $30,000, and Location 2 is expected to have the following unequal annual net cash flows:
Year 1 $59,000
Year 2 44,000
Year 3 29,000
Year 4 18,000
Year 5 31,000
Year 6 25,000
Year 7 18,000
Year 8 16,000
Required:
1. Determine the cash payback period for both location proposals.
