Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $1,340,000 Preferred dividends $76,000 Shares of common stock outstanding 80,000 Market price per share of common stock $132.72 a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required. $fill in the blank 1 b. Determine the company's price-earnings ratio. Round to one decimal place. fill in the blank 2

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Earnings per Share and Price-Earnings Ratio

A company reports the following:

Net income $1,340,000
Preferred dividends $76,000
Shares of common stock outstanding 80,000
Market price per share of common stock $132.72

a.  Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required.
$fill in the blank 1

b.  Determine the company's price-earnings ratio. Round to one decimal place.
fill in the blank 2

 

 

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