Earnings per share and price-earnings ratio A company reports the following: Line Item Description Amount Net income $650,000 Preferred dividends $45,000 Shares of common stock outstanding 110,000 Market price per share of common stock $44 a. Determine the company's earnings per share on common stock. Round your answer to two decimal places.fill in the blank 1 of 2$ b. Determine the company's price-earnings ratio.
Earnings per share and price-earnings ratio A company reports the following: Line Item Description Amount Net income $650,000 Preferred dividends $45,000 Shares of common stock outstanding 110,000 Market price per share of common stock $44 a. Determine the company's earnings per share on common stock. Round your answer to two decimal places.fill in the blank 1 of 2$ b. Determine the company's price-earnings ratio.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 11PEB: Earnings per share and price-earnings ratio A company reports the following: a. Determine the...
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Earnings per share and price-earnings ratio
A company reports the following:
| Line Item Description | Amount |
|---|---|
| Net income | $650,000 |
| Preferred dividends | $45,000 |
| Shares of common stock outstanding | 110,000 |
| Market price per share of common stock | $44 |
a. Determine the company's earnings per share on common stock. Round your answer to two decimal places.
fill in the blank 1 of 2$
b. Determine the company's price-earnings ratio.
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