On December 31, 2007 and 2008, Taft corporation had 100,000 shares of common stock and 50,000 shares

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Question:

On December 31, 2007 and 2008, Taft corporation had 100,000 shares of common stock and 50,000 shares of noncumulative and nonconvertible preferred stock issued and outstanding.

Additional information:

Stockholders' equity at: $4,500,000

Net income year ended: 200,000

Dividends on preferred stock year ended: 300,000

Market price per share of common stock at: 144

Requirement:

What is the price-earnings ratio on common stock at the end of the year?

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0324312140

16th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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Posted Date: May 25, 2018 07:54 AM

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On December 31, 2007 and 2008, Taft corporation had 100,000 shares of common stock and 50,000 shares

Question:

Expert Answer:

Number of Common shares a 100000 Net Income 1200... View the full answer

Intermediate Accounting

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