Problem 4 FINANCIAL RATIOS. The Format Company reports the following balance sheet data: Current liabilities Bonds payable, 16% $280.000 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 $240,000 Retained earnings $180,000 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: d. Times interest earned; e. Earnings per share; f. Price/earnings ratio; and g. Book value per share.

Problem 4 FINANCIAL RATIOS. The Format Company reports the following balance sheet data: Current liabilities Bonds payable, 16% $280.000 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 $240,000 Retained earnings $180,000 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: d. Times interest earned; e. Earnings per share; f. Price/earnings ratio; and g. Book value per share.

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 4FPE

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Question

Problem 4
Current liahilities
Bonds payable, 16%
$280.000
Preferred stock, 14%. $100 par value
24120,000
$200,000
Common stock $25 par value. 16.800 shares S420,000
Paid-in capital on common stock
$240,000
Retained earnings
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:
d. Times interest earned3B
e. Earnings per share;
f. Price/earnings ratio; and
g. Book value per share.
relative to

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