The balance sheet for Tyde Corporation at the end of the current year indicates the following: Bonds payable, 6%   $4,000,000 5% Preferred stock, $100 par   1,000,000 Common stock, $10 par   2,000,000 Income before income taxes was $480,000 and income taxes expense for the current year amounted to $144,000. Cash dividends paid on common stock were $300,000, and the common stock was selling for $22.88 per share at the end of the year. There were no ownership changes during the year. Determine each of the following: (Round earnings per share to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 5.) (a)   Times interest earned     times (b)   Earnings per share   $   per share (c)   Price-earnings ratio     times

Question
The balance sheet for Tyde Corporation at the end of the current year indicates the following:

Bonds payable, 6%   $4,000,000
5% Preferred stock, $100 par   1,000,000
Common stock, $10 par   2,000,000

Income before income taxes was $480,000 and income taxes expense for the current year amounted to $144,000. Cash dividends paid on common stock were $300,000, and the common stock was selling for $22.88 per share at the end of the year. There were no ownership changes during the year.

Determine each of the following: (Round earnings per share to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 5.)

(a)   Times interest earned  
 
times
(b)   Earnings per share   $
 
per share
(c)   Price-earnings ratio  
 
times
 

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