Question
Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $1,057,500 Preferred dividends $60,000 Shares of common stock outstanding 95,000 Market price
Earnings per Share and Price-Earnings Ratio
A company reports the following:
| Net income | $1,057,500 |
| Preferred dividends | $60,000 |
| Shares of common stock outstanding | 95,000 |
| Market price per share of common stock | $82.95 |
a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required. $fill in the blank 1
b. Determine the company's price-earnings ratio. Round to one decimal place. fill in the blank 2
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Survey of Accounting
Authors: Carl S Warren
5th Edition
9780538489737, 538749091, 538489731, 978-0538749091
