Five Measures of Solvency or Profitability The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following: Bonds payable, 10% $1,700,000 Preferred $stock, $100 par 458,000 Common stock, $15 par 927.450 Income before income tax was $391,000, and income taxes were $58,950, for the current year. Cash dividends paid on common stock during the current year totaled $77,288. The common stock was selling for $50 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, required. a. Times interest earned ratio 3 times b. Earnings per share on common stock C. Price-eamings ratio d. Dividends per share of common stock e. Dividend yield "Check My Work Divide them of income before income taxus est expense by interest expense rest equals the bond payable amount times the interest rate on the bonds Divide et income which is income before as less income taxes) minus preferred dividends by common shares outstanding common stock - para c. Divide common market share price for seling once at the end of the year by common amigs per share from requirement) d. Divide common dividends by common shares outstanding common stock + par value) Divide common dividends per share from requirement e) by share price for selling price at the end of the year) Previous Next >