A company reports the following Net income $140,000 Preferred dividends $20,000 Share of common stock outstanding 60,000 Market price per share of common stock $50 00 (a) Determine the companys earnings per share on common stock (b) Determine the companys price earnings ratio ...

a b Net Income Preferred Dividends Common shar ...

A company reports the following: Net income $140,000 Preferred dividends $20,000 Share of common stock outstanding 60,000

Question:

A company reports the following:

Net income $140,000
Preferred dividends $20,000
Share of outstanding 60,000
Market price per share of $50.00

(a) Determine the company’s earnings per share on .
(b) Determine the company’s price-earnings ratio.

Common Stock
Common 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...