Math Problem Statement

The Gizmo comma Inc. has just announced​ year-end results as​ follows: LOADING.... a. Calculate the book value per share. b. Calculate earnings per share. c. Calculate Gizmo comma Inc.​'s dividend yield. d. Calculate the​ market-to-book ratio. Question content area bottom Part 1 a. The book value per share is ​$

enter your response here.  ​(Round to the nearest​ cent.) Part 2 b. The earnings per share is ​$

enter your response here. ​(Round to the nearest​ cent.) Part 3 c. Gizmo comma Inc.​'s dividend yield is

enter your response here​%. ​(Round to two decimal​ places.) Part 4 d. The ​market-to-book ratio is

enter your response here. ​ (Round to two decimal​ places.)

Solution

To calculate these values, I'll need some additional financial data. Specifically, could you provide the following information from Gizmo, Inc.'s year-end results:

  1. Total Equity or Book Value: Needed to calculate the book value per share.
  2. Number of Shares Outstanding: Required for both book value per share and earnings per share calculations.
  3. Net Income: Used to determine earnings per share.
  4. Dividends Paid per Share: Necessary for calculating the dividend yield.
  5. Current Market Price per Share: Required for both the dividend yield and market-to-book ratio calculations.

Once I have this information, I can calculate:

  • Book Value per Share = Total EquityNumber of Shares Outstanding\frac{\text{Total Equity}}{\text{Number of Shares Outstanding}}
  • Earnings per Share (EPS) = Net IncomeNumber of Shares Outstanding\frac{\text{Net Income}}{\text{Number of Shares Outstanding}}
  • Dividend Yield = Dividends Paid per ShareMarket Price per Share×100\frac{\text{Dividends Paid per Share}}{\text{Market Price per Share}} \times 100 (for percentage)
  • Market-to-Book Ratio = Market Price per ShareBook Value per Share\frac{\text{Market Price per Share}}{\text{Book Value per Share}}

Please provide the details, and I’ll help you complete the calculations.


Would you like to know more about these calculations, or do you have any other questions?

Here are five related questions for further exploration:

  1. What is the importance of the book value per share for investors?
  2. How does earnings per share (EPS) influence a company’s stock price?
  3. Why is the dividend yield a key metric for income investors?
  4. How does the market-to-book ratio reflect a company's valuation?
  5. In what cases might a high market-to-book ratio be viewed positively?

Tip: When analyzing stock performance, comparing these metrics over multiple years provides a clearer trend than a single year's data.

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Math Problem Analysis

Mathematical Concepts

Financial Ratios
Per Share Metrics
Stock Valuation

Formulas

Book Value per Share = Total Equity / Number of Shares Outstanding
Earnings per Share (EPS) = Net Income / Number of Shares Outstanding
Dividend Yield = (Dividends Paid per Share / Market Price per Share) * 100
Market-to-Book Ratio = Market Price per Share / Book Value per Share

Theorems

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Suitable Grade Level

Grades 11-12, Undergraduate