Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first 2 years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $614,100 $577,000 Total investments 66,200 51,200 Total property, plant, and equipment 870,700 648,800 Total current liabilities 116,900 89,400 Total long-term liabilities 295,000 243,000 Preferred 9% stock, $100 par 99,700 99,700 Common stock, $10 par 599,200 599,200 Paid-in capital in excess of par—Common stock 60,500 60,500 Retained earnings 379,700 185,200 Using the balance sheets for Kellman Company, if net income is $102,200 and interest expense is $38,900 for Year 2, and the market price of common shares is $35, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation and final answer to two decimal places.) a.9.98 b.1.56 c.9.81 d.22.44
Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first 2 years of operations indicate the following: Kellman Company Year 2 Year 1 Total current assets $614,100 $577,000 Total investments 66,200 51,200 Total property, plant, and equipment 870,700 648,800 Total current liabilities 116,900 89,400 Total long-term liabilities 295,000 243,000 Preferred 9% stock, $100 par 99,700 99,700 Common stock, $10 par 599,200 599,200 Paid-in capital in excess of par—Common stock 60,500 60,500 Retained earnings 379,700 185,200 Using the balance sheets for Kellman Company, if net income is $102,200 and interest expense is $38,900 for Year 2, and the market price of common shares is $35, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation and final answer to two decimal places.) a.9.98 b.1.56 c.9.81 d.22.44
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 19P
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Use this information for Kellman Company to answer the question that follow.
The balance sheets at the end of each of the first 2 years of operations indicate the following:
| Kellman Company | ||
| Year 2 | Year 1 | |
| Total current assets | $614,100 | $577,000 |
| Total investments | 66,200 | 51,200 |
| Total property, plant, and equipment | 870,700 | 648,800 |
| Total current liabilities | 116,900 | 89,400 |
| Total long-term liabilities | 295,000 | 243,000 |
| 99,700 | 99,700 | |
| Common stock, $10 par | 599,200 | 599,200 |
| Paid-in capital in excess of par—Common stock | 60,500 | 60,500 |
| 379,700 | 185,200 |
Using the balance sheets for Kellman Company, if net income is $102,200 and interest expense is $38,900 for Year 2, and the market price of common shares is $35, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation and final answer to two decimal places.)
a.9.98
b.1.56
c.9.81
d.22.44
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