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The balance sheet for Seuss Company at the end of the current fiscal year indicated the following: Bonds payable, 10% (20-year term) $5,000,000 Preferred 10%
The balance sheet for Seuss Company at the end of the current fiscal year indicated the following:
Bonds payable, 10% (20-year term)
$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 dividendspaid on common stock during the current year totaled $150,000. The common stock sells for $70 per share at theend of the year.
Determine each of the following:
- Number of times interest charges are earned
- Earnings per share on common stock
- Price-earnings ratio
- Dividends per share of common stock
- Dividend yield
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