The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:Bonds payable, 8% $5,000,000Preferred $4 stock, $50 par 2,500,000Common stock, $10 par 5,000,000Income before income tax was $3,000,000, and income taxes were $1,200,000 for the current year. Cash dividends paid on common stock during the current year totaled $1,200,000. The common stock was selling for $32 per share at the end of the year. Determine each of the following: (a) times interest earned ratio, (b) earnings per share on common stock,(c) price-earnings ratio, (d) dividends per share of common stock, and (e) dividend yield. Round ratios and percentages to one decimal place, except for per-share amounts.
The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:
Bonds payable, 8% $5,000,000
Preferred $4 stock, $50 par 2,500,000
Common stock, $10 par 5,000,000
Income before income tax was $3,000,000, and income taxes were $1,200,000 for the current year. Cash dividends paid on common stock during the current year totaled $1,200,000. The common stock was selling for $32 per share at the end of the year. Determine each of the following: (a) times interest earned ratio, (b) earnings per share on common stock,
(c) price-earnings ratio, (d) dividends per share of common stock, and (e) dividend yield. Round ratios and percentages to one decimal place, except for per-share amounts.
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