A company reports the following: Net income .................................................... $660,000 Preferred dividends ........................................ $40,000 Shares of common stock

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A company reports the following:

Net income .................................................... $660,000
Preferred dividends ........................................ $40,000
Shares of common stock outstanding ......... 150,000
Market price per share of common stock ........... $40

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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Accounting

ISBN: 9781337902687

28th Edition

Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider

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Question Posted: Apr 14, 2021 06:23 AM

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A company reports the following: Net income .................................................... $660,000 Preferred dividends ........................................ $40,000 Shares of common stock

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Accounting

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