Six measures of solvency or profitability OBJ. 2, 3 The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:

Bonds payable, 8% (issued in 2006, due in 2026) $5,000,000 Preferred $4 stock, $50 par 2,500,000 Common stock, $10 par 5,000,000 Income before income tax 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) number of times bond interest charges are earned,

(b) number of times preferred dividends are earned,

(c) earnings per share on common stock,

(d) price-earnings ratio,

(e) dividends per share of common stock, and

(f) dividend yield. Round to one decimal place, except earnings per share, which should be rounded to two decimal places.