A company reports the following: Net income .............$185,000 Preferred dividends.......... $25,000 Shares of common stock outstanding...100,000 Market

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A company reports the following:

Net income .............$185,000

Preferred dividends.......... $25,000

Shares of common stock outstanding...100,000

Market price per share of common stock... $20

a. Determine the company’s earnings per share on common stock.

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...
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Corporate Financial Accounting

ISBN: 978-1133952411

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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