=+Income before income tax was $1,000,000, and income taxes were $150,000, for the current year. Cash dividends

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=+Income before income tax was $1,000,000, and income taxes were $150,000, for the current year. Cash dividends paid on common stock during the current year totaled

$200,000. The common stock was selling for $40 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.

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Accounting

ISBN: 978-1111001346

23rd Edition

Authors: Carl S. Warren

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