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Financial information for Forever 18 includes the following selected data (in millions): ($ in millions) 2018 2017 Net income $243 $252 Dividends on preferred stock $30 $25 Average shares outstanding (in millions)$300 $350 Stock price $11.77 $10.72 Calculate the price-earnings ratio in 2017 and 2018. Farrell Company has provided the following data: Common stock: 30,000 Market value, December 31 $165,000 Shares outstanding Book value, December 31 Dividends paid $50,000 $90,000 Preferred stock, 10%, $100 par $100,000 Net income $150,000 Interest on long-term debt The price-earnings ratio is: $15,000

Financial information for Forever 18 includes the following selected data (in millions): ($ in millions) 2018 2017 Net income $243 $252 Dividends on preferred stock $30 $25 Average shares outstanding (in millions)$300 $350 Stock price $11.77 $10.72 Calculate the price-earnings ratio in 2017 and 2018. Farrell Company has provided the following data: Common stock: 30,000 Market value, December 31 $165,000 Shares outstanding Book value, December 31 Dividends paid $50,000 $90,000 Preferred stock, 10%, $100 par $100,000 Net income $150,000 Interest on long-term debt The price-earnings ratio is: $15,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Financial information for Forever 18 includes the following selected data (in millions): ($ in millions) 2018 2017 Net income $243 $252 Dividends on preferred stock $30 $25 Average shares outstanding (in millions)$300 $350 Stock price $11.77 $10.72 Calculate the price-earnings ratio in 2017 and 2018. Farrell Company has provided the following data: Common stock: 30,000 Market value, December 31 $165,000 Shares outstanding Book value, December 31 Dividends paid $50,000 $90,000 Preferred stock, 10%, $100 par $100,000 Net income $150,000 Interest on long-term debt The price-earnings ratio is: $15,000
Transcribed Image Text:Financial information for Forever 18 includes the following selected data (in millions): ($ in millions) 2018 2017 Net income $243 $252 Dividends on preferred stock $30 $25 Average shares outstanding (in millions)$300 $350 Stock price $11.77 $10.72 Calculate the price-earnings ratio in 2017 and 2018. Farrell Company has provided the following data: Common stock: 30,000 Market value, December 31 $165,000 Shares outstanding Book value, December 31 Dividends paid $50,000 $90,000 Preferred stock, 10%, $100 par $100,000 Net income $150,000 Interest on long-term debt The price-earnings ratio is: $15,000
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