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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 19E: Lyon Company shows the following condensed income statement information for the year ended December...

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Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.
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: $15,000
Solution
Financial information for Forever 18 includes the following selected data: ($ in millions except share data) 2021 2020 Net income $141 ; $105 Dividends on preferred stock $27 ; $22 Average shares outstanding (in millions) 300 ; 250 Stock price $11.62 ; $10.57 Calculate the price-earnings ratio in 2020 and 2021
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