The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:
Question:
The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:
Bonds payable, 8% ........................ $7,500,000
Preferred $4 stock, $50 par ............ 3,750,000
Common stock, $10 par .................. 7,500,000
Income before income tax was $5,280,000, and income taxes were $1,305,000 for the current year. Cash dividends paid on common stock during the current year totaled $1,950,000. The common stock was selling for $53.90 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.
Step by Step Answer:
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider