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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