Question
The balance sheet for Fisher Company at the end of the current fiscal year indicated the following: Bonds payable, 10% (issued in 2000, due in
The balance sheet for Fisher Company at the end of the current fiscal year indicated the following:
Bonds payable, 10% (issued in 2000, due in 2020) | $5,000,000 |
Preferred 10% stock, $100 par | 1,000,000 |
Common stock, $10 par | 2,000,000 |
Income before income tax was $1,500,000 and income taxes were $200,000, for the current year. Cash dividends paid on common stock during the current year totaled $150,000. The common stock was selling for $70 per share at the end of the year.
Required:
Determine each of the following:
(1) | Number of times bond interest charges are earned; |
(2) | Number of times preferred dividends are earned; |
(3) | Earnings per share on common stock; |
(4) | Price-earnings ratio; |
(5) | Dividends per share of common stock; and |
(6) | Dividend yield. |
Round to one decimal place except earnings per share, which should be rounded to two decimal places.
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