Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During Year 3, Banker Corporation reported after-tax net income of $3,560,000. During the year, the number of shares of stock outstanding remained constant at 9,980

During Year 3, Banker Corporation reported after-tax net income of $3,560,000. During the year, the number of shares of stock outstanding remained constant at 9,980 of $100 par, 8 percent preferred stock and 397,000 shares of common stock. The companys total stockholders equity is $19,500,000 at December 31, Year 3. Banker Corporations common stock was selling at $52 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.90 per share to common stockholders.

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 final answer to 2 decimal places.)

d. Compute the dividend yield. (Round your answer to 2 decimal places)

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 A Risk Based Approach to Conducting a Quality Audit

Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg

10th edition

1305080572, 978-1305465664, 1305465660, 978-1305080577

More Books

Students also viewed these Accounting questions