A company reports the following: Net income $611,000 Preferred dividends $35,000 Shares of common stock outstanding 90,000 Market price per share of common stock $35.84 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. _______
A company reports the following: Net income $611,000 Preferred dividends $35,000 Shares of common stock outstanding 90,000 Market price per share of common stock $35.84 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. _______
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 11BE
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Question
A company reports the following:
| Net income | $611,000 |
| Preferred dividends | $35,000 |
| Shares of common stock outstanding | 90,000 |
| Market price per share of common stock | $35.84 |
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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