Question
The following data is available for two companies, A Corporation and B Corporation, for the year ended December 31, 2023. A Corporation B Corporation Income
The following data is available for two companies, A Corporation and B Corporation, for the year ended December 31, 2023.
|
| A Corporation | B Corporation |
| Income from continuing operations (net of tax) | $500,000 | $550,000 |
| Income from discontinued operations (net of tax) | 110,000 | 75,000 |
| Net income | 610,000 | 625,000 |
| Common shares* | 600,000 | 450,000 |
| Beginning retained earnings | 2,050,000 | 3,580,000 |
| Current liabilities | 480,000 | 420,000 |
| Long-term liabilities | 880,000 | 777,000 |
| Market price per share | 20 | 12 |
| Total dividends paid | 220,000 | 130,000 |
| EPS Ratio | $6.10 | $12.50 |
*A has 100,000 shares and B has 50,000 shares outstanding throughout the whole year. Neither company has preferred shares. How much is the priceearnings ratio for B Corporation for the year of 2023?
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
14th Edition
9780470587232, 470587288, 470587237, 978-0470587287
