A company reports the following: Net income $233,000 Preferred dividends $13,000 Shares of common stock outstanding 40,000 Market price per share of common stock $43.45 a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required. b. Determine the company's price-earnings ratio. Round to one decimal place.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A company reports the following:
Net income
$233,000
Preferred dividends
$13,000
Shares of common stock outstanding
40,000
Market price per share of common stock
$43.45
a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded
answer of requirement a for subsequent requirement, if required.
b. Determine the company's price-earnings ratio. Round to one decimal place.
Transcribed Image Text:A company reports the following: Net income $233,000 Preferred dividends $13,000 Shares of common stock outstanding 40,000 Market price per share of common stock $43.45 a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required. b. Determine the company's price-earnings ratio. Round to one decimal place.
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