Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,700,000 Preferred $10 stock, $50 par 154,000 Common stock, $15 par 288,750 Income before income tax expense was $489,600,and income taxes were $73,800 for the current year. Cash dividends paid on common stock during th current year totaled $92,400. The common stock was selling for $240 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 Quigg Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% $1,700,000 Preferred $10 stock, $50 par 154,000 Common stock, $15 par 288,750 Income before income tax expense was $489,600,and income taxes were $73,800 for the current year. Cash dividends paid on common stock during th current year totaled $92,400. The common stock was selling for $240 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 %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Five Measures of Solvency or Profitability
The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following:
Bonds payable, 8%
$1,700,000
Preferred $10 stock, $50 par
154,000
Common stock, $15 par
288,750
Income before income tax expense was $489,600,and income taxes were $73,800 for the current year. Cash dividends paid on common stock during the
current year totaled $92,400. The common stock was selling for $240 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
%
%24
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d3975cd-4ee1-4a32-9a42-7564910249af%2Ff8f14227-0d0b-4287-a9c0-e3d8d7cb427f%2F6f01h6_processed.png&w=3840&q=75)
Transcribed Image Text:Five Measures of Solvency or Profitability
The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following:
Bonds payable, 8%
$1,700,000
Preferred $10 stock, $50 par
154,000
Common stock, $15 par
288,750
Income before income tax expense was $489,600,and income taxes were $73,800 for the current year. Cash dividends paid on common stock during the
current year totaled $92,400. The common stock was selling for $240 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
%
%24
%24
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