Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $210,000 Preferred dividends $12,000 Shares of common stock outstanding 20,000 Market price per share of common stock $69.30 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 for subsequent requirement, if required. $fill in the blank 1 b.  Determine the company's price-earnings ratio. Round to one decimal place. fill in the blank 2

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
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Problem 21E
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Earnings per Share and Price-Earnings Ratio

A company reports the following:

Net income $210,000
Preferred dividends $12,000
Shares of common stock outstanding 20,000
Market price per share of common stock $69.30

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 for subsequent requirement, if required.
$fill in the blank 1

b.  Determine the company's price-earnings ratio. Round to one decimal place.
fill in the blank 2

 
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