Question
During Year 4, Racing Limited reported net income after taxes of $950,000. During the year, the number of shares of stock outstanding remained constant at
During Year 4, Racing Limited reported net income after taxes of $950,000. During the year, the number of shares of stock outstanding remained constant at 5,000 shares of $50 par, 6 percent preferred stock and 40,000 shares of common stock. The companys total liabilities and stockholders' equity on December 31, Year 4, was $1,400,000, which included $450,000 of liabilities. The common stock was selling for $60 per share at the end of the year. All dividends for the year was declared and paid, including $2.00 per share to common stockholders.
Required: Compute the following.
Earnings per share
Book value per share
Price-earnings ratio
Dividend yield
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