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The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following: Bonds payable, 10% (issued in 2000, due
The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following: Bonds payable, 10% (issued in 2000, due in 2020): $4,000,000 Preferred $5 stock, $100 par: $1,000,000 Common stock, $10 par: $2,000,000 Income before income tax was $1,000,000, and income taxes were $150,000, for the current year. Cash dividends paid on common stock during the current year totaled $200,000. The common stock was selling for $40 per share at the end of the year. a. Number of Times Bond Interest Charges Are Earned: times b. Number of Times Preferred Dividends Are Earned: times c. Earnings per Share on Common Stock: (Enter as dollars and cents.) $ d. Price-Earnings Ratio: e. Dividends per Share of Common Stock: (Enter as dollars and cents) $ f. Dividend yield: %
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