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Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Income before
Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the current fiscal year indicated the following: Income before income tax expense was $456,000, and income taxes were $68,250 for the current year. Cash dividends paid on common stock during the current year totaled $109,275. The common stock was selling for $40 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, if required. Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Zeil Inc. for December 31 of the current fiscal year: Common stock, $35 par value (no change during the year) $10,500,0008,000,000 Preferred $10 stock, $200 par (no change during the year) The net income was $820,000 and the declared dividends on the common stock were $75,000 for the current year. The market price of the common stock is $11.90 per share. For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places. a. Earnings per Share b. Price-Earnings Ratio c. Dividends per Share d. Dividend Yield $ $ %
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