For 2006, Ethridge Corporation reported after-tax net income of ($3,600,000). During the year, the number of shares

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For 2006, Ethridge Corporation reported after-tax net income of \($3,600,000\). During the year, the number of shares of stock outstanding remained constant at 10,000 of \($100\) par, 9 percent preferred stock and 400,000 shares of common stock. The company’s total stockholders’ equity was \($20,000,000\) at December 31, 2006. Ethridge Corporation’s common stock was selling at \($52\) per share at the end of its fiscal year. All dividends for the year had been paid, including \($4.80\) per share to common stock¬ holders.

Required:
Compute the following:

a. Earnings per share

b. Book value per share of common stock

c. Price-earnings ratio

d. Dividend yield

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Survey Of Accounting

ISBN: 9780073526775

1st Edition

Authors: Thomas Edmonds, Philip Olds, Frances McNair, Bor-Yi Tsay

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