FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
A company reports the following:
Net income $185,000
Preferred dividends $25,000
Shares of common stock outstanding 100,000
Market price per share of common stock $20
a. Determine the company’s earnings per share on common stock.
b. Determine the company’s price-earnings ratio. Round to one decimal place.
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- Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $460,000 Preferred dividends $40,000 Shares of common stock outstanding 150,000 Market price per share of common stock $40.60 a. Determine the company's earnings per share on common stock. Round your answer to two decimal places. Use the rounded answer of requirement a for subsequent requirement, if required. b. Determine the company's price-earnings ratio. Round your answer to one decimal place.arrow_forwardAssume a company provided the following information: Earnings per share $ 1.20 Number of common shares outstanding, beginning of the year 45,000 Number of common shares outstanding, end of the year 55,000 Price - earnings ratio 12.50 Dividend yield ratio 4% The dividend per share is closest to: Multiple Choice $1.10. $0.90. $1.20. $0.60.arrow_forwardEarnings per share and price-earnings ratio A company reports the following: Line Item Description Amount Net income $650,000 Preferred dividends $45,000 Shares of common stock outstanding 110,000 Market price per share of common stock $44 a. Determine the company's earnings per share on common stock. Round your answer to two decimal places.fill in the blank 1 of 2$ b. Determine the company's price-earnings ratio.arrow_forward
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