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Selected data for Gibson Company for Year 3 follows: Earnings (net income) $ 193,000 Preferred stock (11,900 shares at $30 par, 4%) $ 357,000 Common
Selected data for Gibson Company for Year 3 follows:
Earnings (net income) | $ | 193,000 | |||||
Preferred stock (11,900 shares at $30 par, 4%) | $ | 357,000 | |||||
Common stock (44,500 shares no par, market value $60) | 529,000 | ||||||
Retained earnings | 574,500 | ||||||
$ | 1,460,500 | ||||||
Less: Treasury stock | |||||||
Preferred (1,600 shares) | $ | 60,000 | |||||
Common (1,600 shares) | 21,000 | 81,000 | |||||
Total stockholders equity | $ | 1,379,500 | |||||
Required a. Calculate the Gibson Companys earnings per share ratio, price-earnings ratio and return on equity ratio. (Round intermediate calculations and final answers to 2 decimal places.)
Selected data for Gibson Company for Year 3 follows: Earnings (net income) Preferred stock (11,900 shares at $30 par, 4%) Common stock (44,500 shares no par, market value $60) Retained earnings $ 193,000 $ 357,000 529,000 574,500 $1,460,500 Less: Treasury stock Preferred (1,600 shares) Common (1,600 shares) Total stockholders' equity $60,000 21,000 81,000 $1,379,500 Required a. Calculate the Gibson Company's earnings per share ratio, price-earnings ratio and return on equity ratio. (Round intermediate calculations and final answers to 2 decimal places.) Earnings per share Price-earnings ratio Return on equity %Step by Step Solution
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