Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $735,000 Preferred dividends $42,000 Shares of common stock outstanding 55,000 Market price per share of common stock $187.74 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.
Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $735,000 Preferred dividends $42,000 Shares of common stock outstanding 55,000 Market price per share of common stock $187.74 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
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 11PEA: 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:
Net income
$735,000
Preferred dividends
$42,000
Shares of common stock outstanding
55,000
Market price per share of common stock
$187.74
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6743881-05fa-4a94-b713-a08091e31fed%2F187f9f09-8115-4958-acfc-1112a58ec0fa%2Fq83f0xl.jpeg&w=3840&q=75)
Transcribed Image Text:Earnings per Share and Price-Earnings Ratio
A company reports the following:
Net income
$735,000
Preferred dividends
$42,000
Shares of common stock outstanding
55,000
Market price per share of common stock
$187.74
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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