Ratio analysisDuring 2006, Chawla Corporation reported net income after taxes of $960,000.

Ratio analysis

During 2006, Chawla Corporation reported net income after taxes of $960,000. During the year, the number of shares of stock outstanding remained constant at 20,000 shares of $100 par 8 percent preferred stock and 200,000 shares of common stock. The company’s total equities at December 31, 2006, were $3,500,000, which included $640,000 of liabilities. The common stock was selling for $40 per share at the end of the year. All dividends for the year were declared and paid, including $3.60 per share to common stockholders.

Required

Compute the following.

a. Earnings per share

b. Book value per share

c. Price-earnings ratio

d. Dividend yield