Earnings per share and price-earnings ratio Obj. 5 A company reports the following: Net income $185,000 Preferred
Question:
Earnings per share and price-earnings ratio Obj. 5 A company reports the following:
Net income $185,000 Preferred dividends $25,000 Shares of common stock outstanding 100,000 Market price per share of common stock $20
a. Determine the company’s earnings per share on common stock.
b. Determine the company’s price-earnings ratio. Round to one decimal place.
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Related Book For 
Corporate Financial Accounting
ISBN: 9781337398176
15th Edition
Authors: Carl Warren, Jefferson Jones
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