The following was provided by Elephant Company as of December 31, Year 2: Net income $ 528,000 Preferred stock, (20,000 shares at $10 par, 4%) $ 200,000 Common stock, (220,000 shares at $1 par) $ 220,000 Paid-in capital in excess of par-common $ 2,475,500 Retained earnings $ 3,824,500 On the most recent trading date, Elephant company common shares sold at $36 and the preferred shares sold at $14. The following information on industry averages is provided: Earnings per share $2.06 Price-earnings ratio 13.2:1 Required: 1) Calculate and compare Elephant Company ratios with the industry averages shown above. (Round your answer to two decimal places.)
The following was provided by Elephant Company as of December 31, Year 2: Net income $ 528,000 Preferred stock, (20,000 shares at $10 par, 4%) $ 200,000 Common stock, (220,000 shares at $1 par) $ 220,000 Paid-in capital in excess of par-common $ 2,475,500 Retained earnings $ 3,824,500 On the most recent trading date, Elephant company common shares sold at $36 and the preferred shares sold at $14. The following information on industry averages is provided: Earnings per share $2.06 Price-earnings ratio 13.2:1 Required: 1) Calculate and compare Elephant Company ratios with the industry averages shown above. (Round your answer to two decimal places.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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The following was provided by Elephant Company as of December 31, Year 2:
Net income $ 528,000
Preferred stock, (20,000 shares at $10 par, 4%) $ 200,000
Common stock, (220,000 shares at $1 par) $ 220,000
Paid-in capital in excess of par-common $ 2,475,500
Retained earnings $ 3,824,500
On the most recent trading date, Elephant company common shares sold at $36 and the
The following information on industry averages is provided:
- Earnings per share $2.06
- Price-earnings ratio 13.2:1
Required:
1) Calculate and compare Elephant Company ratios with the industry averages shown above. (Round your answer to two decimal places.)
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