The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:

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The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:

Bonds payable, 8% ........................ $7,500,000
Preferred $4 stock, $50 par ............ 3,750,000
Common stock, $10 par .................. 7,500,000

Income before income tax was $5,280,000, and income taxes were $1,305,000 for the current year. Cash dividends paid on common stock during the current year totaled $1,950,000. The common stock was selling for $53.90 per share at the end of the year. Determine each of the following: 

(a) Times interest earned ratio, 

(b) Earnings per share on common stock,

(c) Price-earnings ratio, 

(d) Dividends per share of common stock, and 

(e) Dividend yield.

Round ratios and percentages to one decimal place, except for per-share amounts.

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Related Book For  answer-question

Accounting

ISBN: 9781337902687

28th Edition

Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider

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