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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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