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Shown below is the liabilities and stockholders' equity section of the balance sheet for Ingalls Company and Wilder Company. Each has assets totaling $4,200,000. Ingalls
Shown below is the liabilities and stockholders' equity section of the balance sheet for Ingalls Company and Wilder Company. Each has assets totaling $4,200,000. Ingalls Co. Current liabilities $300,000 Long-term debt, 10% 1,200,000 Common stock ($20 par) 2,000,000 Retained earnings (Cash dividends, $220,000) 700,000 Total $4,200,000 Wilder Current Liabilities $600,000 Common Stock ($20 par) $2,900,000 Retained Earnings (Cash dividends, $328,000) $700,000 Total $4,200,000 For the year each company has earned the same income before interest and taxes. Ingalls Co. Income before interest and taxes $1,200,000 Interest expense 120,000 Total 1,080,000 Income taxes (40%) 432,000 Net Income $648,000 Wilder Income before interest and taxes $1,200,000 Interest expense -0- Total 1,200,000 Income taxes (40%) 480,000 Net Income $720,000 At year end, the market price of Ingall's stock was $101 per share, and Wilder's was $63.50. Assume balance sheet amounts are representative for the entire year. What is Ingall's and Wilder's net income per share of stock
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