Earnings per Share, Price-Earnings Ratio, Dividend YieldThe following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year:$9,800,000Common stock, $35 par value (no change during the year)Preferred $5 stock, $200 par (no change during the year)8,000,000The net income was $648,000 and the declared dividends on the common stock were $70,000 for the current year. The market price of the common stock is $13.60 per shareFor the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers totwo decimal placesa. Earnings per Share$b. Price-Earnings Ratioc. Dividends per Shared. Dividend Yield%

a.Compute earnings per share on the common stock.

Answered: Earnings per Share, Price-Earnings…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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, 8% $900,000 Preferred $5 stock, $100 par $228,000 Common stock, $8 par $319,200.00 Income before income tax was $201,600, and income taxes were $30,600 for the current year. Cash dividends paid on common stock during the current year totaled $33,516. The common stock was selling for $28 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. 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
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. Marshall Inc.Comparative Retained Earnings StatementFor the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $3,704,000 $3,264,000 Net income 600,000 550,000 Dividends:     On preferred stock (10,000) (10,000)     On common stock (100,000) (100,000) Retained earnings, December 31 $4,194,000 $3,704,000 Marshall Inc.Comparative Income StatementFor the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $10,850,000 $10,000,000 Cost of merchandise sold 6,000,000 5,450,000 Gross profit $4,850,000 $4,550,000 Selling expenses $2,170,000 $2,000,000 Administrative expenses 1,627,500 1,500,000 Total operating expenses $3,797,500 $3,500,000 Income from operations $1,052,500 $1,050,000 Other revenue and expense:     Other revenue…
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1    20Y2    20Y1 Retained earnings, January 1 $3,112,575 $2,638,225 Net income 700,800 540,300 Dividends: On preferred stock (11,200) (11,200) On common stock (54,750) (54,750) Retained earnings, December 31 $3,747,425 $3,112,575 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1   20Y2   20Y1 Sales $3,863,160 $3,559,340 Cost of merchandise sold 1,516,210 1,394,910 Gross profit $2,346,950 $2,164,430 Selling expenses $731,580 $918,970 Administrative expenses 623,190 539,710 Total operating expenses $1,354,770 $1,458,680 Income from operations $992,180 $705,750 Other revenue and expense:…
Earnings Per Share Financial statement data for the years ended December 31 for Brown Cow Inc. follow: 20Y6 20Y5 Net income $4,243,200 $2,855,360 Preferred dividends $64,000 $64,000 Average number of common shares outstanding 128,000 shares 104,000 shares a. Determine the earnings per share for 20Y6 and 20Y5. Round your answers to two decimal places. 20Y6 per share 20Y5 per share b. Does the change in the earnings per share from 20Y5 to 20Y6 indicate a favorable or unfavorable trend? %24 %24
Los Altos, Inc., disclosed the following information in a recent annual report: Year 1 Year 2 Net income $73,500 $123,750 Preferred stock dividends 6,300 6,750 Average common stockholders’ equity 2,700,000 3,150,000 Dividend per common share 2.70 2.52 Earnings per share 3.99 4.61 Market price per common share, year-end 41.00 47.30 Calculate the return on common stockholders’ equity for Los Altos, Inc. for both years.Round to two decimals. Year 1 Year 2 Return on Common Stockholders' Equity Answer Answer Did the return improve from Year 1 to Year 2? Answer
Questions: 1. Price-earnings ratio 2. Dividend payout ratio 3. Dividend yield ratio
Five Measures of Solvency or Profitability The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following: Bonds payable, 9% $1,600,000 Preferred $5 stock, $100 par 340,000 Common stock, $8 par 115,600 Income before income tax was $360,000, and income taxes were $54,000, for the current year. Cash dividends paid on common stock during the current year totaled $104,040. The common stock was selling for s240 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. 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
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, 6% $1,500,000 Preferred $10 stock, $100 par $88,000 Common stock, $14 par $954,800.00 Income before income tax was $171,000, and income taxes were $25,800 for the current year. Cash dividends paid on common stock during the current year totaled $16,368. The common stock was selling for $16 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock 2$ е. Dividend yield %
Ratio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Prior Year Accounts payable $618,000 $300,000 Current maturities of serial bonds payable 550,000 550,000 Serial bonds payable, 10% 2,480,000 3,030,000 Common stock, $1 par value 90,000 120,000 Paid-in capital in excess of par 1,000,000 1,010,000 Retained earnings 3,470,000 2,750,000 The income before income tax expense was $757,500 and $662,800 for the current and prior years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place. Current year fill in the blank 1 Prior year fill in the blank 2 b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year fill in the blank 3 Prior year fill in the blank 4 c. The ratio of liabilities to stockholders' equity have improved and the…
The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 55 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $3,112,575 $2,638,225 Net income 700,800 540,300 Dividends: On preferred stock (11,200) (11,200) On common stock (54,750) (54,750) Retained earnings, December 31 $3,747,425 $3,112,575 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $3,863,160 $3,559,340 Cost of merchandise sold 1,516,210 1,394,910 Gross profit $2,346,950 $2,164,430 Selling expenses $731,580 $918,970 Administrative expenses 623,190 539,710 Total operating expenses $1,354,770 $1,458,680 Income from operations $992,180 $705,750 Other revenue and expense:…
Please answer all parts with explanations
Financial statement data for the year ending December 31 for Langford Company are as follows: Net income $450,000 Preferred dividends $50,000 Average number of common shares outstanding 80,000 shares Compute the earnings per share for the year. a.$5.00 b.$6.25 c.$5.63 d.$6.00

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS