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Lark had net income for 2018 of S103,000. Lark had 38,000 shares of common stock outstanding at the beginning of the year and 44

Kryger [21]

Answer:

price earning ratio = 19.44 times

so correct option is c. 19.44

Explanation:

given data

net income = $103,000

common stock outstanding beginning = 38,000 shares

common stock outstanding ending = 44,000 shares

preferred stock outstanding = 5,000 shares

paid preferred dividends = $29,000

common stock = $35.00 per share

market price preferred stock = $55.00 per share

to find out

Lark's price earnings ratio

solution

first we get here average no of equity share that is

average no of equity share = common stock outstanding beginning + common stock outstanding ending ÷ 2

average no of equity share = $\frac{38000+44000}{2}$

average no of equity share = 41000 share

and

earning per share will be here as

earning per share = ( net income - paid preferred dividends ) ÷ average no of equity share

earning per share = $\frac{103000-29000}{41000}$

earning per share = $1.80

so here price earning ratio will be as

price earning ratio = $\frac{market\ price\ common\ share}{earning\ per\ share}$

price earning ratio = $\frac{35}{1.80}$

price earning ratio = 19.44 times

so correct option is c. 19.44

7 0

3 years ago

What were working conditions like before the labor movement?

Ivan

Im not sure, sorry, I wish I could help

8 0

3 years ago

Which area of study involves microeconomics?

Mazyrski [523]

Answer:

The science of microeconomics covers a variety of specialized areas of study including: Industrial Organization: the entry and exit of firms, innovation, and the role of trademarks. Labor Economics: wages, employment, and labor market dynamics.

Explanation:

5 0

3 years ago

Read 2 more answers

A company had stock outstanding as follows during each of its first three years of operations: 2,500 shares of 10%, $100 par, cu

ad-work [718]

Answer:

See the attached photo for the completed the schedule.

Explanation:

Note: See the attached photo for the completed the schedule.

In the attach excel file, the following formulae and calculations are used:

Peferred stock dividend per share = Total cumulative preferred stock dividend paid in a year / Number of cumulative preferred shares

Common stock dividend per share = Total common stock dividend paid in a year / Number of common shares

Total cumulative preferred stock dividend = Number of cumulative preferred stock * Par value * Dividend rate = 2,500 * $100 * 10% = 2,500 * $100 * 10% = $25,000

Outstanding cumulative preferred stock dividend in Year 1 = Total cumulative preferred stock dividend - Total cumulative preferred stock dividend paid in Year 1 = $25,000 - $10,000 = $15,000

Outstanding cumulative preferred stock dividend in Year 2 = Outstanding cumulative preferred stock dividend in Year 1 = $15,000

Total cumulative preferred stock dividend paid in Year 3 = Total cumulative preferred stock dividend + Outstanding cumulative preferred stock dividend in Year 2 = $25,000 + $15,000 = $40,000

Total common stock dividend paid in Year 3 = Dividend distributed in Year 3 - Total cumulative preferred stock dividend paid in Year 3 = $60,000 - $40,000 = $20,000

6 0

3 years ago

Justin deposits $4,000 into an IRA account that earns an annual interest rate of 6.5%. If he makes no additional deposits, how m

Liula [17]

Answer:

The Future value at year time is $4,260

Explanation:

The future value at the end of the year one can be found by using the compounding formula which is as under:

Future Value = Present Value * (1 +r)^n

Future Value = $4,000 * (1.065)^ 1 = $4,260

8 0

3 years ago