For Year 2, Weston Corporation reported after-tax net income of $1,200,000. During the year, the number of
Question:
For Year 2, Weston Corporation reported after-tax net income of $1,200,000. During the year, the number of outstanding shares of 6%$100 par preferred stock remained constant at 5,000 , and 500,000 shares of common stock were outstanding all year. The company's total stockholders' equity at December 31, Year 2, was $12,500,000. Weston's common stock was selling at $38 per share at the end of the year. All dividends for the year were paid, including a dividend of $2.50 per share to common stockholders.
Required: Compute the following:
a. Earnings per share . Round your answer to the nearest cent.
b. Book value per share of common stock
c. Price-earnings ratio . Round your answer to one decimal place.
d. Dividend yield . Round your answer to one decimal place.
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach