Bianchi Company reported these figures for 2024 and 2023:

Requirements 

1. Compute Bianchi Company’s earnings per share for 2024. Assume the company paid the minimum preferred dividend during 2024. Round to the nearest cent.
2. Compute Bianchi Company’s price/earnings ratio for 2024. Assume the company’s market price per share of common stock is $9. Round to two decimals.
3. Compute Bianchi Company’s rate of return on common stockholders’ equity for 2024. Assume the company paid the minimum preferred dividend during 2024.
Round to the nearest whole percent.

Transcribed Image Text:

Income Statement-partial: Net Income Balance Sheet-partial: Total Assets Paid-In Capital: Preferred Stock-11%, $9 Par Value; 60,000 shares authorized, 12,000 shares issued and outstanding Common Stock-$2 Par Value; 60,000 shares authorized, 50,000 shares issued and outstanding Paid-In Capital in Excess of Par-Common Retained Earnings Total Stockholders' Equity 2024 $ 34,380 Dec. 31, 2024 $ 285,000 $ 108,000 100,000 14,000 60,500 $ 282,500 2023 $ 18,000 Dec. 31, 2023 $ 280,000 $ 108,000 100,000 14,000 38,000 $ 260,000