QUESTION

How Do I obtain the Preferred Dividends?

	2018	2017
Income Statementpartial:
Net Income	$6,600	$20,000
	Dec. 31, 2018	Dec. 31, 2017
Balance Sheetpartial:
Total Assets	$245,000	$200,000
Paid-In Capital:
Preferred Stock4%, $4 Par Value; 50,000 shares	$40,000	$40,000
authorized, 10,000 shares issued and outstanding
Common Stock$3 Par Value; 45,000 shares	30,000	30,000
authorized; 10,000 shares issued and outstanding
Paid-In Capital in Excess of ParCommon	12,000	12,000
Retained Earnings	41,000	36,000
Total Stockholders' Equity	$123,000	$118,000

Net income Preferred dividends ) / Ave. # common shrs OS Earnings per share 0.50 6,600 1,600 10,000 Requirement 2. Compute Castillo Company 's price/earnings ratio for 2018. Assume the company 's market price per share of common stock is $7. Round to two decimals. Select the formula, then enter the amounts to calculate the company's price/earnings ratio for 2018. (Abbreviations used: Ave.-average, OS-outstanding, SE = stockholders' equity, shrs shares.) Market price per shareEarnings per share Pricelearnings ratio 0.50 14.00