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5. The balance sheet for Stem Cell Bahamas Corp. at the end of the current year indicates the following: Bonds payable, 8% 6% Preferred
5. The balance sheet for Stem Cell Bahamas Corp. at the end of the current year indicates the following: Bonds payable, 8% 6% Preferred stock, $100 par Common stock, $10 par $4,000,000 1,000,000 2,000,000 Income before income taxes was $960,000 and income taxes expense for the current year amounted to $288,000. Cash dividends paid on common stock was $300,000, and the common stock was selling for $45 per share at the end of the year. Instructions Compute the following to 2 decimal places (identify answers in 'times', '$' or '%'): (a) Earnings per share for common stock (3 pts.) (b) Price-earnings ratio (2 pts.) (c) Dividends yield for common stock (2 pts.)
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