Lerner had a net income for 2016 of $105,000. Lerner had 39,000 shares of common stock outstanding at the beginning of the year and 48,000 shares of common stock outstanding at the end of the year. There were 5,000 shares of preferred stock outstanding all year. During 2016, Lerner declared and paid preferred dividends of $29,000. On December 31, 2106, the market price of Lerner's common stock is $35 per share and the market price of its preferred stock is $63 per share. What is Lerner's price/earnings ratio? a. 14.50 b. 36.00 c. 16.00 d. 20.00

Lerner had a net income for 2016 of $105,000. Lerner had 39,000 shares of common stock outstanding at the beginning of the year and 48,000 shares of common stock outstanding at the end of the year. There were 5,000 shares of preferred stock outstanding all year. During 2016, Lerner declared and paid preferred dividends of $29,000. On December 31, 2106, the market price of Lerner's common stock is $35 per share and the market price of its preferred stock is $63 per share. What is Lerner's price/earnings ratio? a. 14.50 b. 36.00 c. 16.00 d. 20.00

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 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...

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Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
Carla Corporation reported net income of $644,000 in 2017 and had 234,000 shares of common stock outstanding throughout the year. Also outstanding all year were 63,300 options to purchase common stock at $10 per share. The average market price of the stock during the year was $15. Compute diluted earnings per share. (Round answer to 2 decimal places, e.g. 15.25.)
Snow Cleaners, Inc., had net income of $493,600 for its year ended December 31, 2018. During the year, the company had outstanding 64,000 shares of Preferred Stock at 12% with a $40 par value, and 37,280 shares of common stock with a par value of $10. Calculate the earnings per share of common stock for the year ended December 31, 2018.
Culver Corporation reported net income of $682,000 in 2017 and had 217,000 shares of common stock outstanding throughout the year. Also outstanding all year were 54,900 options to purchase common stock at $8 per share. The average market price of the stock during the year was $12. Compute diluted earnings per share.
In 2017, Hollis Corporation reported net income of $1,000,000. It declared and paid preferred stock dividends of $250,000. During 2017, Hollis had a weighted average of 190,000 common shares outstanding. Compute Hollis’s 2017 earnings per share.
Bonita Corporation had net income of $1,950,000 and paid dividends to common stockholders of $323,700 in 2017. The weighted average number of shares outstanding in 2017 was 500,000 shares. Bonita Corporation's common stock is selling for $45 per share on the NASDAQ. Bonita Corporation's payout ratio for 2017 is? A. $3.9 per share. B. 13.6%. C. 16.6%. D. 9.7%.
Gwinnett Park Co. reported net income of $253,300 for its fiscal year ended September 30, 2017. At the beginning of that year, 150,000 shares of common stock were outstanding. On February 1, 2017, an additional 30,000 shares were issues. On September 1, 2017, 12,000 shares were purchased as treasury stock. During the year, the company paid the annual dividend on 7,000 shares of its 8%, $60 par value preferred stock that were outstanding during the entire fiscal year. Calculate the basic earnings per share of common stock for the year ended September 30, 2017. Calculate weighted-average number of shares of common stock outstanding during the fiscal year ended September 30, 2017.
BMS Ltd. had 2,200,000 average shares outstanding during all of 2017. During 2017, BMS also had 50,000 options outstanding with exercise prices of $17 each. The average stock price of BMS during 2017 was $21. This company also had 1,000 shares of preferred stock outstanding (10%. $100 par value) for the entire year, which are each convertible into 20 shares of common stock. If net income of the company was 500,000, what is the diluted earnings per share for 2017? A. $0.224 B. $0.220 C. $0.226 D. $0.225
At December 31, 2017, Reid Company had 600,000 sharesof common stock issued and outstanding, 400,000 of whichhad been issued and outstanding throughout the year and200,000 of which were issued on October 1, 2017. Netincome for 2017 was $2,000,000, and dividends declared onpreferred stock were $400,000. Compute Reid’s earningsper common share. (Round to the nearest penny.)
Ecker Company reports $1,825,000 of net income for 2017 and declares $255,500 of cash dividends on its preferred stock for 2017. At the end of 2017, the company had 290,000 weighted-average shares of common stock. 1. What amount of net income is available to common stockholders for 2017?
In 2017 Pedroni Corporation reported net income of $1,000,000. It declared and paid preferred stock a dividend of $250,000. During 2017, Pedroni had a weighted average of 190,000 shares outstanding. Compute Pedroni's Earnings Per Share.
Crystal Arts, Inc., had earnings of $291,600 for 2016. The company had 30,000 shares of common stock outstanding during the year. In addition, the company issued 1,800 shares of $150 par value preferred stock on January 3, 2016. The preferred stock has a dividend of $7 per share. There were no transactions in either common or preferred stock during 2016. Determine the basic earnings per share for Crystal Arts. Round answer to two decimal places.