Question
The following selected data is from the financial statements of the Company for, 2017, 2016, and 2015: 2017 2016 2015 Total Assets 4,000,000 2,980,000 6,000,000
The following selected data is from the financial statements of the Company for, 2017, 2016, and 2015:
2017 | 2016 | 2015 | |
Total Assets | 4,000,000 | 2,980,000 | 6,000,000 |
Notes Payable (3% interest) | 1,000,000 | 7,350,000 | 1,500,000 |
Common Stock | 250,000 | 1,040,000 | 1,700,000 |
Preferred $2 stock, $18 par value | 700,000 | 650,000 | 3,500,000 |
Retained Earnings | 7,950,000 | 4,455,000 | 1,850,000 |
The balance sheet for the Corporation the end of the current fiscal year indicated the following: Common stock, $8 par 9,000,000
Bonds payable, 5% (issued in 2015, due in 2030) $ 3,000,000
Preferred 2% stock, $20 par 7,000,000
Income before income tax was $2,500,000 and income taxes were $1,000,000, for the current year. Cash dividends paid on the common stock during the current year totalled $700,000. The common stock was selling for $30 per share at the end of the year. Find each of the following:
Price-earnings ratio
Earnings per share on common stock
The amount of times interest charges are earned
Dividends per share of common stock
Dividend yield
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