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Bonds payable, 7% (issued in 2000, due in 2020) $1,600,000 Preferred $10 stock, $50 par 143,000 Common stock, $14 par 520,520 Income before income tax
Bonds payable, 7% (issued in 2000, due in 2020) $1,600,000 Preferred $10 stock, $50 par 143,000 Common stock, $14 par 520,520 Income before income tax was $470,400, and income taxes were $70,000, for the current year. Cash dividends paid on common stock during the current year totaled $200,772. The common stock was selling for $120 per share at the end of the year. Determine each of the following. Round to one decimal place, except as indicated otherwise below. a. Number of Times Bond Interest Charges Are Earned: times b. Number of Times Preferred Dividends Are Earned: times c. Earnings per Share on Common Stock: (Enter as dollars and cents.) $ d. Price-Earnings Ratio: e. Dividends per Share of Common Stock: (Enter as dollars and cents) $ f. Dividend Yield: %
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