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
A corporation must obtain shareholder approval before the company a. hires or fires a significant number of employees. b. expand
dexar [7]

Answer:

c. sells off a major portion of its business to another company.

Explanation:

The corporation that should obtain the approval of the shareholder prior when the business major portion is sell off to the another company as it is very crucial decision taken by the company. It cant be taken without the approval of the shareholder as they are the original investors of the company

So as per the given situation, the option c is correct

7 0
3 years ago
To identify the management problem, the researcher must possess considerable skill in interacting with the DM. Which of the foll
Brrunno [24]

Answer:

d. All of the above are correct.

Explanation:

a. Access to the DM may be difficult and some organizations have complicated protocols for access to top executives.

b. The organizational stauts of the researcher or the research department may make it difficult to reach the key DM in the early stages of the project.

c. there may be more than one key DM and meeting with them collectively or individually may be

All the above-mentioned factors can complicate the interaction.

8 0
3 years ago
Read 2 more answers
The table shows the taxable income range and marginal tax rates for a single taxpayer in Oceania. There are no exemptions or ded
zheka24 [161]
1.C.​$15,345
2.c.23.61%
3.c. United States
4.false
5.B. Social Security
6.d. spending that must be authorized by Congress each year
7.d. raising payroll Texas or raising benefits
8.D.States increase taxes to fund education.
9.A.the money supply and interest rates that automatically increase or decrease along with the business cycle.
10.
8 0
3 years ago
Which is an example of a document that needs to be saved for financial planning?
sesenic [268]
The right answer for the question that is being asked and shown above is that: "d. Grocery store receipt." an example of a document that needs to be saved for financial planning is that of a Grocery store receipt.<span>
</span>
4 0
2 years ago
Ernesto owns a house painting company. Total sales for the past year were $75,000. His bills for running the business were $30,0
pentagon [3]

Answer:

Accounting profit = $45,000

Economic profit = $5,000

Explanation:

The computation of accounting profit and economic profit is shown below:-

Accounting profit = Sales - External expenses

= $75,000 - $30,000

= $45,000

Economic profit = Accounting profit - Implicit cost

= $45,000 - $40,000

= $5,000

Therefore for computing the accounting profit and economic profit we simply applied the above formula so that each one could arrive

7 0
3 years ago
Other questions:
  • What type of inmate labor system puts inmates to work cleaning public parks and maintaining roads and highways?select one:?
    8·1 answer
  • Honest tea considers themselves a​ mission-driven business. they have decided that it is important to understand the communities
    9·1 answer
  • Please help me ASAP.<br> ..............
    10·1 answer
  • Poland's Paints allocates overhead based on machine hours. Selected data for the most recent year follow.Estimated MOH $238,000A
    11·1 answer
  • Which of the following are used as indicators of a strong market in the future?I. The advance-decline spread is increasing at a
    7·1 answer
  • Zenith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts
    12·1 answer
  • Nell and Kirby are in the process of negotiating their divorce agreement. What should be the tax consequences to Nell and Kirby
    13·1 answer
  • Determine Cost of Land Four Corners Delivery Company acquired an adjacent lot to construct a new warehouse, paying $200,000 and
    6·1 answer
  • Explain project teams
    10·1 answer
  • Assessing how customers in the target market evaluate price is the _______ stage in the pricing process.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!