The Earnings per share is $3.5; Dividend payout ratio is 60%; Dividend yield ratio is 5% and Price-earnings ratio is 12.
1. Earnings per share
Number of outstanding shares=Common stock/Par value
Number of outstanding shares=30,000/5
Number of outstanding shares=6,000
Earnings per share=Net income/Number of outstanding shares
Earnings per share=$21,000/6,000
Earnings per share=$3.5
2. Dividend payout ratio
Dividend payout ratio=Dividend per share/Earning per share
Dividend payout ratio=$2.10/$3.5
Dividend payout ratio=0.6×100
Dividend payout ratio=60%
3. Dividend yield ratio
Dividend yield ratio=Dividend per share/Market price per share
Dividend yield ratio=$2.10/$42
Dividend yield ratio=0.05×100
Dividend yield ratio=5%
4. Price-earnings ratio
Price-earnings ratio=Market price per share/Earning per share
Price-earnings ratio=$42/$3.5
Price-earnings ratio=12
Therefore the Earnings per share is $3.5; Dividend payout ratio is 60%; Dividend yield ratio is 5% and Price-earnings ratio is 12.
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