1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Norma-Jean [14]
3 years ago
11

Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $1,306,000 Preferred dividends $74,000 S

hares of common stock outstanding 80,000 Market price per share of common stock $97.02 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. $ b. Determine the company's price-earnings ratio. Round to one decimal place.
Business
1 answer:
mina [271]3 years ago
5 0

Answer:

(a) The company's earnings per share on common stock is $ 15.40

(b) The company's price-earnings ratio is 6.3

Explanation:

Net income = $1,306,000

Preferred dividends = $74,000

Shares of common stock outstanding = 80,000 shares

Market price per share of common stock = $97.02

(a) Earnings per share = (Net income−Preference dividend ) ÷ Shares outstanding

=  ($1,306,000−$74,000 ) ÷ 80,000 shares

=  $1,232,000  ÷ 80,000 shares

= $ 15.4

(b) Price-Earnings ratio =  Market price per share  ÷ Earnings per share

=  $97.02 ÷ $15.40 per share

= 6.3

​

You might be interested in
Ten years ago, Cary Company issued $1,500,000 of 7 percent, 10-year bonds at a price of 95. On the maturity date of January 2, a
vampirchik [111]

Answer:

Debit Bonds Payable for $1,500,000

Credit Cash for $1,500,000.

Explanation:

Although this bonds were issued at a discount, but the Discount on Bonds Payable account will have zero balance on the day of maturity because of the entry that has been made on each interest payment date.

Therefore, the necessary journal entry for January 2, 2019 to complete is as follows:

Debit Bonds Payable for $1,500,000

Credit Cash for $1,500,000

This entry will appear as follows:

<u>Date                  Name of Account               DR ($)               CR ($)       </u>

02 Jan '19         Bond payable                1,500,000

                            Cash                                                       1,500,000

<u><em>                          (To record retirement of 10-year bonds at maturity.)    </em></u>

6 0
3 years ago
A firm that is considering purchasing a capital budgeting project with a beta coefficient greater than the firm's current beta c
Mariana [72]

Answer:

True

Explanation:

5 0
3 years ago
Funsters, Inc., the largest toy company in the country, sells its most popular doll for $15. It has just learned that its leadin
sukhopar [10]

Answer:

Funsters should increase the supply of its doll now before the other doll hits the market.

Explanation:

6 0
3 years ago
Market researchers for a local bakery determined that Jewish people consume 63% of the portion of bagels sold in New York City.
Anon25 [30]

Answer:

Subcultural

Explanation:

Consumer behaviour refers to how individuals make decisions on ways to spend their available resources, time, money, and effort on variety of items.

A society is composed of several sub-cultures in which iindividuals can identify themselves. A Subculture is a group of people within a culture who are different from the dominant culture but have something in common with one another such as common interests, religions, ethnic backgrounds.

Culture is considered an external factor that influences consumer behavior. Since different cultures have different values, they will have different buying habits. A typical example is the Jewish people that purchase about 63% of bagels that is sold in New York City.

7 0
3 years ago
What is the purpose of file extensions?
ELEN [110]
File extensions are a way of labelling the names of files so you and your computer can keep track of what they contain. File extensions are a way of letting the user and their computer know what type of program created any given file.
5 0
2 years ago
Read 2 more answers
Other questions:
  • The management of River Corporation is considering the purchase of a new machine costing $380,000. The company's desired rate of
    15·1 answer
  • g You own a stock that is expected to earn 21 percent in an improving economy, 16 percent in a normal economy, and lose 5 percen
    8·1 answer
  • Muffin’s Masonry, Inc.’s, balance sheet lists net fixed assets as $18.00 million. The fixed assets could currently be sold for $
    12·1 answer
  • Why might Soviet economic planners have favored heavy industry over the makers of consumer goods?
    12·1 answer
  • Sheridan Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the
    5·1 answer
  • Assuming Year 2 net credit sales totaled $122,000, what was the company's average days to collect receivables
    10·1 answer
  • Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $425,000, and its year-e
    11·1 answer
  • Flychucker Corporation is evaluating an extra dividend versus a share repurchase. In either case $14,000 would be spent. Current
    14·1 answer
  • Question 1
    9·1 answer
  • Chang Industries has already spent $230,000 to produce tables. Those tables can be sold as is for $442,000. Alternatively, the t
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!