In: Accounting
The balance sheet for Seuss Company at the end of the current
fiscal year indicated the following:
Bonds payable, 10% (20-year term) | $5,000,000 |
Preferred 10% stock, $100 par | 1,000,000 |
Common stock, $10 par | 2,000,000 |
Income before income tax was $1,500,000, and income taxes were $200,000 for the current year. Cash dividends paid on common stock during the current year totaled $150,000. The common stock sells for $75 per share at the end of the year.
Required:
Determine each of the following:
Round to one decimal place except earnings per share and dividends per share, which should be rounded to two decimal places.
1. Times interest earned | times | |
2. Earnings per share on common stock | $ | |
3. Price-earnings ratio | ||
4. Dividends per share of common stock | $ | |
5. Dividend yield | % |