Question
The following selected data is from the financial statements of the Company for December 31, 2019, 2018, and 2017: 12-31-2019 12-31-2018 12-31-2017 Total Assets 3,000,000
The following selected data is from the financial statements of the Company for December 31, 2019, 2018, and 2017:
12-31-2019 | 12-31-2018 | 12-31-2017 | |
Total Assets | 3,000,000 | 5,450,000 | 6,000,000 |
Notes Payable (9% interest) | 4,500,000 | 2,350,000 | 1,800,000 |
Common Stock | 750,000 | 820,000 | 1,365,000 |
Preferred $7 stock, $20 par value | 100,000 | 350,000 | 2,500,000 |
Retained Earnings | 6,550,000 | 7,330,000 | 1,650,000 |
Income before income tax was $1,650,000 and income taxes were $500,000, for the current year. Cash dividends paid on the common stock during the current year totaled $390,000. The common stock was selling for $22 per share at the end of the year. Find: each of the following:
a. Earnings per share on common stock b. Price-earnings ratio c. The number of times interest charges are earned d. Dividends per share of common stock; and e. Dividend yield.
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