Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selected data for Zachary Company for Year 3 follows: Earnings (net income) $ 192,000 Preferred stock (11,800 shares at $50 par, 6%) $ 590,000 Common

Selected data for Zachary Company for Year 3 follows:

Earnings (net income) $ 192,000
Preferred stock (11,800 shares at $50 par, 6%) $ 590,000
Common stock (44,200 shares no par, market value $52) 517,000
Retained earnings 568,500
$ 1,675,500
Less: Treasury stock
Preferred (2,000 shares) $ 45,000
Common (2,000 shares) 30,000 75,000
Total stockholders equity $ 1,600,500
Required
a. Calculate the Zachary Companys earnings per share ratio, price-earnings ratio and return on equity ratio. (Round intermediate calculations and final answers to 2 decimal places.)
image text in transcribed
Selected data for Zachary Company for Year 3 follows: Earnings (net income) Preferred stock (11,800 shares at $50 par, 68) Common stock (44,200 shares no par, market value $52) Retained earnings Less: Treasury stock Preferred (2,000 shares) Common (2,000 shares) Total stockholders' equity $ 192,000 $ 590,000 517,000 568,500 $1,675,500 $45,000 30,000 75,000 $1,600,500 Required a. Calculate the Zachary 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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management Measuring Monitoring And Motivating Performance

Authors: Leslie G. Eldenburg, Susan Wolcott

1st Edition

0471205494, 978-0471205494

More Books

Students also viewed these Accounting questions

Question

13. What is parallelism? Give an original example.

Answered: 1 week ago