Earnings per share and price-earnings ratio OBJ. 3 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.

1./. Earnings per share and price-earnings ratio OBJ. 3 A company reports the following:
Net income $410,000 Preferred dividends $60,000 Shares of common stock outstanding 50,000 Market price per share of common stock $84

a. Determine the company’s earnings per share on common stock.

b. Determine the company’s price-earnings ratio.
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