For Year 2, Weston Corporation reported after-tax net income of $1,240,000. During the year, the number of outstanding shares of 6% $100 par preferred stock remained constant at 5,600, and 510,000 shares of common stock were outstanding all year. The company's total stockholders' equity at December 31, Year 2, was $12,750,000. Weston's common stock was selling at $38 per share at the end of the year. All dividends for the year were paid, including a dividend of $2.50 per share to common stockholders. Required: Compute the following: a. Earnings per share. Note: Round your answer to 2 decimal faces. b. Book value per share of common stock. Note: Round your answer to 2 decimal places. c. Price-earnings ratio. Note: Round Intermediate calculations to 2 decimal places. d. Dividend yield. Note: Round your answer to 1 decimal place. a. Earnings per share b. Book value per share c. Price-earnings ratio d. Dividend yield per share 136

For Year 2, Weston Corporation reported after-tax net income of $1,240,000. During the year, the number of outstanding shares of 6% $100 par preferred stock remained constant at 5,600, and 510,000 shares of common stock were outstanding all year. The company's total stockholders' equity at December 31, Year 2, was $12,750,000. Weston's common stock was selling at $38 per share at the end of the year. All dividends for the year were paid, including a dividend of $2.50 per share to common stockholders. Required: Compute the following: a. Earnings per share. Note: Round your answer to 2 decimal faces. b. Book value per share of common stock. Note: Round your answer to 2 decimal places. c. Price-earnings ratio. Note: Round Intermediate calculations to 2 decimal places. d. Dividend yield. Note: Round your answer to 1 decimal place. a. Earnings per share b. Book value per share c. Price-earnings ratio d. Dividend yield per share 136

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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Rebert Inc. showed the following balances for last year: Reberts net income for last year was 3,182,000. Refer to the information for Rebert Inc. above. Also, assume that the market price per share for Rebert is 51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. 3. Compute earnings per share. (Note: Round to two decimals.) 4. Compute the price-earnings ratio. (Note: Round to the nearest whole number.)
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