FINANCIAL RATIOS. The Format Company reports the following balance sheet data. Current liabilities $280.000 Bonds payable. 16% Preferred stock, 14%, $100 par value $120,000 $200,000 Common stock $25 par value. 16.800 shares $420,000 Paid-in capital on common stock Retained earnings $240,000 S180,000 Income before taxes is $160,000. The tax rate is 40 percent. Common stockholders equity in the previous year was $800,000. The market price per share of common stock is $35. Requirement: Calculate the following: a. Net income; b. Preferred dividends; c. Return on common stock; d. Times interest earned; e. Earnings per share; f. Price/earnings ratio; and Rookvaluoner scháre
FINANCIAL RATIOS. The Format Company reports the following balance sheet data. Current liabilities $280.000 Bonds payable. 16% Preferred stock, 14%, $100 par value $120,000 $200,000 Common stock $25 par value. 16.800 shares $420,000 Paid-in capital on common stock Retained earnings $240,000 S180,000 Income before taxes is $160,000. The tax rate is 40 percent. Common stockholders equity in the previous year was $800,000. The market price per share of common stock is $35. Requirement: Calculate the following: a. Net income; b. Preferred dividends; c. Return on common stock; d. Times interest earned; e. Earnings per share; f. Price/earnings ratio; and Rookvaluoner scháre
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 4
FINANCIAL RATIOS. The Format Company reports the following balance sheet data.
Current liabilities
$280.000
Bonds payable. 16%
Preferred stock, 14%, S100 par value
$120,000
$200.000
Common stock $25 par value. 16.800 shares $420,000
Paid-in capital on common stock
Retained earnings
$240,000
$180,000
Income before taxes is $160,000. The tax rate is 40 percent. Common stockholders
equity in the prévious year was $800,000. The market price per share of common stock
is $35.
Requirement:
Calculate the following:
a. Net income;
b. Preferred dividends;
c. Return on common stock;
d. Times interest earned;
e. Earnings per share;
f. Price/earnings ratio; and
g. Book value per share.
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