a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield
a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 11BE
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Five Measures of Solvency or Profitability
The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:
Bonds payable, 7% | $1,500,000 |
$408,000 | |
Common stock, $10 par | $530,400.00 |
Income before income tax was $336,000, and income taxes were $50,400 for the current year. Cash dividends paid on common stock during the current year totaled $127,296. The common stock was selling for $60 per share at the end of the year.
Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required.
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Step 1 Introduction
VIEWStep 2 a) Computation of times interest earned ratio
VIEWStep 3 b) Computation of earnings per share on common stock
VIEWStep 4 c) Computation of price earnings ratio
VIEWStep 5 d) Computation of dividends per share of common stock
VIEWStep 6 e) Computation of dividend yield
VIEWStep 7 Answers
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