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saw5 [17]
3 years ago
15

KINGBIRD, INC. Income Statement For the Year Ended December 31, 2020

Business
1 answer:
KiRa [710]3 years ago
3 0

Answer and Explanation:

The computation is shown below:

a. Earning per share

= (Net income - preferred dividend) ÷ (Weighted average number of outstanding shares)

= ($173,600 - $6,500) ÷ (27,200 shares + 38,600 shares) ÷ 2

= $167,100 ÷ 32,900 shares

= $5.08 per share

b. Price earnings ratio = Market price ÷ Earning per share

                                    = $15 / $5.08

                                    = 2.95

c. Payout ratio = Dividend paid ÷ Net income

= ($21,700 - $6,500) ÷ ($173,600)

= 8.76%

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