Monona Company reported net income of $29,975 for 2013. During all of 2013, Monona had 1,000 shares
Question:
Monona Company reported net income of $29,975 for 2013. During all of 2013, Monona had 1,000 shares of 10%, $100 par, nonconvertible preferred stock outstanding, on which the year's dividends had been paid. At the beginning of 2013, the company had 7,000 shares of common stock outstanding. On
April 2, 2013, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2013. Common dividends of $17,000 had been paid during 2013. At the end of 2013, the market price per share of common stock was $17.50.
Required:
1. Compute Monona's basic earnings per share for 2013.
2. Compute the price/earnings ratio for 2013.
Common StockCommon stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Step by Step Answer:
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach