Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During Year 3, Jordan Corporation reported after-tax net income of $3,565,000. During the year, the number of shares of stock outstanding remained constant at 9,580

During Year 3, Jordan Corporation reported after-tax net income of $3,565,000. During the year, the number of shares of stock outstanding remained constant at 9,580 of $100 par, 9 percent preferred stock and 397,000 shares of common stock. The companys total stockholders equity is $19,900,000 at December 31, Year 3. Jordan 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.

  1. Compute the earnings per share.

    Note: Round your answer to 2 decimal places.

  2. Compute the book value per share of common stock.

    Note: Round your answer to 2 decimal places.

  3. Compute the price-earnings ratio.

    Note: Round intermediate calculations and final answer to 2 decimal places.

  4. Compute the dividend yield.

    Note: Round your percentage answer to 2 decimal places (i.e., 0.2345 should be entered as 23.45).

image text in transcribed
During Year 3, Jordan Corporation reported after-tax net income of $3,565,000. During the year, the number of shares of stock outstanding remained constant at 9,580 of $100 par, 9 percent preferred stock and 397,000 shares of common stock. The company's total stockholders' equity is $19,900,000 at December 31, Year 3. Jordan Corporation's 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. Note: Round your answer to 2 decimal places. b. Compute the book value per share of common stock. Note: Round your answer to 2 decimal places. c. Compute the price-earnings ratio. Note: Round intermediate calculations and final answer to 2 decimal places. d. Compute the dividend yield. Note: Round your percentage answer to 2 decimal places (i.e., 0.2345 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

Financial Accounting

Authors: Anne Britton, Christopher Waterston

3rd Edition

027365859X, 978-0273658597

More Books

Students also viewed these Accounting questions

Question

What is the work environment like? Friendly/collegial?

Answered: 1 week ago