A company reports the following: Net income $596,500 Preferred dividends $34,000 Shares of common stock outstanding 75,000 Market price per share of common stock $81.75 a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a fa subsequent requirement, if required. b. Determine the company's price-earnings ratio. Round to one decimal place.

A company reports the following: Net income $596,500 Preferred dividends $34,000 Shares of common stock outstanding 75,000 Market price per share of common stock $81.75 a. Determine the company's earnings per share on common stock. Round your answer to the nearest cent. Use the rounded answer of requirement a fa subsequent requirement, if required. b. Determine the company's price-earnings ratio. Round to one decimal place.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 99.5C

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