Five Measures of Solvency or ProfitabilityThe balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:Bonds payable, 10%\$1,900,000Preferred \$10 stock, \$50 par97,000Common stock, \$11 par1,760,550.00Income before income tax was \$399,000, and income taxes were \$59,500 for the current year. Cash dividends paid on common stock during the current year totaled \$51,216. Thecommon stock was selling for \$16 per share at the end of the year.Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers forsubsequent requirements, if requireda. Times interest earned ratiotimesb. Earnings per share on common stockc. Price-earnings ratiod. Dividends per share of common stocke. Dividend yield%

Question
Step 1

a. Compute the times interest earned ratio:

Step 2

Working note:

Calculate Interest expenses:

Step 3

b. Compute the earnings per share on co...

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