Question

The balance sheet for Shryer Industries Inc. at the end of the current fiscal year indicated the following:
Bonds payable, 5% (issued in 2000, due in 2020) .. $ 8,000,000
Preferred $4 stock, $75 par ........... 15,000,000
Common stock, $7 par ............. 3,500,000

Income before income tax was $3,400,000, and income taxes were $1,000,000 for the current year. Cash dividends paid on common stock during the current year totaled $100,000. The common stock was selling for $8 per share at the end of the year. Determine each of the following:
(a) Number of times bond interest charges are earned,
(b) Number of times preferred dividends are earned,
(c) Earnings per share on common stock,
(d) Price-earnings ratio,
(e) Dividends per share of common stock, and
(f) Dividend yield.
Round to one decimal place except earnings per share, which should be rounded to two decimal places.



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  • CreatedFebruary 04, 2014
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