Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $410,000 Preferred dividends $60,000 Shares of common stock outstanding 50,000 Market price per share of common stock $84 a.  Determine the company's earnings per share on common stock.$ 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 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 $410,000
Preferred dividends $60,000
Shares of common stock outstanding 50,000
Market price per share of common stock $84

a.  Determine the company's earnings per share on common stock.
$

b.  Determine the company's price-earnings ratio.

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