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 year’s 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 shaare of common stock was $17.50. 1. Compute Monona’s basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
Monona Company reported net income of $29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, $100 par, nonconvertible
1. Compute Monona’s basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
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