Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During 2014, Desny Corporation reported after-tax net income of $3,580,000. During the year, the number of shares of stock outstanding remained constant at 9,700 of

During 2014, Desny Corporation reported after-tax net income of $3,580,000. During the year, the number of shares of stock outstanding remained constant at 9,700 of $100 par, 9 percent preferred stock and 397,000 shares of common stock. The companys total stockholders equity is $20,000,000 at December 31, 2014. Desny Corporations common stock was selling at $54 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.60 per share to common stockholders.

equired
a.

Compute the earnings per share. (Round your answer to 2 decimal places.)

b.

Compute the book value per share of common stock. (Round your answer to 2 decimal places.)

c.

Compute the price-earnings ratio. (Round intermediate calculations and answer to 2 decimal places.)

d.

Compute the dividend yield. (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principles

Authors: Howard F. Stettler

3rd Edition

0130521183, 9780130521187

More Books

Students also viewed these Accounting questions

Question

=+ (e) The probability in Problem 2.15.

Answered: 1 week ago

Question

Draw and explain what happens in a circular flow of income?

Answered: 1 week ago