PROBLEMIV-FINANCIALRATIOS(4Points) The following information was taken from the financial statements of Borges Distributors, for December 31 of the current year: Common stock, $10 par value (no change during the year) $2,500,000 Preferred $5 stock, $100 par (no change during the year) 550,000 The net income was $550,000, and the declared dividends on the common stock were $75,000 for the current year. The market price of the common stock is $40 per share. For the common stock, determine (a) earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and, (d) the dividend yield. Round EPS to two decimal places, and the rest to one decimal place. a. Earnings per share b. Price-earnings ratio c. Dividends per share d. Dividend vield PROBLEM III-INSTALLMENT NOTE (11 Points) Biondi Corp sells medical equipment in the Miami area. Journalize the following transactions for the company in the month of May. a. Borrowed $34,000 at 6% for 5 years, with annual payments of $6,698 b. Recorded the issuance of the note receiving the cash c. At the end of the first year, paid $6,698, of which $1,450 was for interest d. At the end of the second year, paid $6,698, of which $1,185 was interest. e. Made the final payment of $6,698, of which $324 was for interest