Question
Earnings per Share and Price-Earnings Ratio A company reports the following: Net income$1,091,000Preferred dividends$62,000Shares of common stock outstanding70,000Market price per share of common stock$77.91 a.
Earnings per Share and Price-Earnings Ratio
A company reports the following:
Net income$1,091,000Preferred dividends$62,000Shares of common stock outstanding70,000Market price per share of common stock$77.91
a.Determine the company'searnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a for subsequent requirement, if required.
b.Determine the company'sprice-earnings ratio. Round to one decimal place.
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Accounting Information Systems
Authors: George H Bodnar, William S Hopwood
10th Edition
013609712X, 978-0136097129
