The balance sheet for Meridian Technologies Inc. at the end of the current fiscal year showed the following: Account Amount Bonds payable, 8% (issued in 2010, due in 2030) $3,500,000|| Preferred $50 stock, $100 par Common stock, $5 par $800,000 $1,500,000 Income before income tax was $960,000, and income taxes were $240,000 for the current year. Cash dividends paid on the common stock during the current year totaled $180,000. The common stock was selling for $32 per share at the end of the year. Determine each of the following: a) Number of times bond interest charges are earned b) Number of times preferred dividends are earned c) Earnings per share on common stock d) Price-earnings ratio

The balance sheet for Meridian Technologies Inc. at the end of the current fiscal year showed the following: Account Amount Bonds payable, 8% (issued in 2010, due in 2030) $3,500,000|| Preferred $50 stock, $100 par Common stock, $5 par $800,000 $1,500,000 Income before income tax was $960,000, and income taxes were $240,000 for the current year. Cash dividends paid on the common stock during the current year totaled $180,000. The common stock was selling for $32 per share at the end of the year. Determine each of the following: a) Number of times bond interest charges are earned b) Number of times preferred dividends are earned c) Earnings per share on common stock d) Price-earnings ratio

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 1PEB: Brower Co. is considering the following alternative financing plans: Income tax is estimated at 40%...

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