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Monona Company reported net income of $29,975 for 2013. During all of 2013, Monona had 1,000 shares of 10%, $100 par, nonconvertible preferred stock outstanding, on which the year's dividends had been paid. At the beginning of 2013, the company had 7,000 shares of common stock outstanding. On April 2, 2013, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2013. Common dividends of $17,000 had been paid during 2013. At the end of 2013, the market price per share of common stock was $17.50.
Required:
Compute Monona's basic earnings per share for 2013. If required, round your answer to the nearest cent.
$ ________per share
Compute the price/earnings ratio for 2013. If required, round your answer to one decimal place.
_________times
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