Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $530,000 Preferred dividends $30,000 Shares of common stock outstanding 50,000 Market price per share of common stock $87.00 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 b. Determine the company's price-earnings ratio. Round to one decimal place. fill in the blank
Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $530,000 Preferred dividends $30,000 Shares of common stock outstanding 50,000 Market price per share of common stock $87.00 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 b. Determine the company's price-earnings ratio. Round to one decimal place. fill in the blank
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
Section: Chapter Questions
Problem 21E
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Earnings per Share and Price-Earnings Ratio
A company reports the following:
Net income | $530,000 |
Preferred dividends | $30,000 |
Shares of common stock outstanding | 50,000 |
Market price per share of common stock | $87.00 |
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
b. Determine the company's price-earnings ratio. Round to one decimal place.
fill in the blank
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