The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:
Question:
The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:
Bonds payable, 8% $5,000,000
Preferred $4 stock, $50 par 2,500,000
Common stock, $10 par 5,000,000
Income before income tax was $3,000,000, and income taxes were $1,200,000 for the current year. Cash dividends paid on common stock during the current year totaled $1,200,000. The common stock was selling for $32 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.)
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac