Five measures of solvency or profitability Obj. 4, 5 The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:

Bonds payable, 8% $5,000,000 Preferred $4 stock, $50 par 2,500,000 Common stock, $10 par 5,000,000 Income before income tax expense was $3,000,000, and income taxes were $1,200,000 for the current year. Cash dividends paid on common stock during the current year totaled $1,200,000. The common stock was selling for $32 per share at the end of the year. Determine each of the following:

(a) times interest earned ratio

(b) earnings per share on common stock,

(c) price-earnings ratio,

(d) dividends per share of common stock, and

(e) dividend yield. Round ratios and percentages to one decimal place, except for per-share amounts.

AppendixLO1