A company reports the following:Net income $185,000Preferred dividends $25,000Shares of common stock outstanding 100,000Market price per share of common stock $20a. Determine the company’s earnings per share on common stock.b. Determine the company’s price-earnings ratio. Round to one decimal place.
A company reports the following:Net income $185,000Preferred dividends $25,000Shares of common stock outstanding 100,000Market price per share of common stock $20a. Determine the company’s earnings per share on common stock.b. Determine the company’s price-earnings ratio. Round to one decimal place.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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