Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $460,000 Preferred dividends $40,000 Shares of common stock outstanding 150,000 Market price per share of common stock $40.60 a. Determine the company's earnings per share on common stock. Round your answer to two decimal places. Use the rounded answer of requirement a for subsequent requirement, if required. $fill in the blank 1 b. Determine the company's price-earnings ratio. Round your answer to one decimal place. fill in the blank 2
Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $460,000 Preferred dividends $40,000 Shares of common stock outstanding 150,000 Market price per share of common stock $40.60 a. Determine the company's earnings per share on common stock. Round your answer to two decimal places. Use the rounded answer of requirement a for subsequent requirement, if required. $fill in the blank 1 b. Determine the company's price-earnings ratio. Round your answer to one decimal place. fill in the blank 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Earnings per Share and Price-Earnings Ratio
A company reports the following:
| Net income | $460,000 |
| Preferred dividends | $40,000 |
| Shares of common stock outstanding | 150,000 |
| Market price per share of common stock | $40.60 |
a. Determine the company's earnings per share on common stock. Round your answer to two decimal places. Use the rounded answer of requirement a for subsequent requirement, if required.
$fill in the blank 1
b. Determine the company's price-earnings ratio. Round your answer to one decimal place.
fill in the blank 2
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