Compute the price/earnings ratio

Assignment Help Accounting Basics
Reference no: EM13869259

Sardel Company reported net income of $29,975 for 2010. During all of 2010 the company 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 2010 the company had 7,000 shares of common stock outstanding. On April 2, 2010, the company issued another 2,000 shares of common stock, so that 9,000 common shares were outstanding at the end of 2010. Common dividends of $17,000 had been paid during 2010. At the end of 2010 the market price per share of common stock was $17.50.

Required:
1. Compute the basic earnings per share of Sardel Company for 2010.
2. Compute the price/earnings ratio for 2010. 

Reference no: EM13869259

Questions Cloud

How many trits are needed to hold a six-bit number : How many trits are needed to hold a 6-bit number? Give an expression for the number of trits needed to hold n bits.
Compute the data rate of the human eye using information : Compute the data rate of the human eye using the following information. The visual field consists of about 106 elements (pixels). Each pixel can be reduced to a superposition of the three primary colors.
Write an original analysis of a piece of dramatic : Write an original analysis of a piece of dramatic writing from Raisin in the Sun. Writing an analysis of dramatic writing commonly entails formulating and arguing a thesis that synthesizes a thematic aspect of the writing with a formal one
This overstatement of pretax income was material : This overstatement of pretax income was material. The related income tax effect of this error was $12,000 for Year 1. Record the correcting entries in Year 2.
Compute the price/earnings ratio : Sardel Company reported net income of $29,975 for 2010. During all of 2010 the company 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 2010 the company ha..
Draft an income statement and statement of cash flows : On January 3, 2013 Mandy MacMahaninvested $500,000 to open her first restaurant Alabama Barbecued Chicken in her hometown in Alabama.  Her town is known to be a trucker stop and a tourist destination as it has several antique and preserved landmarks ..
What is the total information capacity of the human genome : What is the total information capacity (in bits) of the human genome? What is the maximum information capacity (in bits) of the average gene?
Dividends on this preferred stock were paid : Jamieson Company earned net income of $43,800 during 2010. At the beginning of 2010 it had 10,000 shares of common stock outstanding;
About healthsouth used unethical accounting measures : HealthSouth used unethical accounting measures

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Define the journalize the transactions

Journalize the transactions

  What is the difference between financial statements

what is the difference between financial statements prepared from the expanded accounting equation and those prepared

  A corporation purchases 10000 shares of its own 10 par

a corporation purchases 10000 shares of its own 10 par common stock for 35 per share recording it at cost. what will be

  Iguana inc manufactures bamboo picture frames that sell for

iguana inc. manufactures bamboo picture frames that sell for 22 each. each frame requires 3 linear feet of bamboo which

  A proprietor mr a has reported a profit of rs 125000 at the

a proprietor mr. a has reported a profit of rs. 125000 at the end of the financial year after taking into consideration

  Prepare the manufacturing staffs calculations

Prepare the manufacturing staffs calculations for the three alternatives:    In addition to reducing costs, the new technology proposed for the greenfield plant would increase  rnanufacturing flexibility, which would enable eTI to respond more quic..

  Prepare the entries that batson company would record for

sampson co. sold merchandise to batson co. on account 39000 terms 215 net 45. the cost of the merchandise sold is

  How much revenue per account would be sufficient for sprint

sprint nextel is one of the largest digital wireless service providers in the united states. in a recent year it had

  Presented below are terms preceded by letters a through g

presented below are terms preceded by letters a through g and followed by a list of definitions 1 through 7. match the

  The current ratio

A company has cash, $85,000; temporary investments, $30,000; net receivables, $60,000; and inventory, $350,000. Current liabilities are $300,000.

  Through mid december of 2011 purchases were limited to 8000

cork company imports and sells a product produced in canada. in the summer of 2011 a natural disaster disrupted

  Prepare financial statements for december

Preparation of Financial Statements for Dec 31, 2008 with the following info below? what should be added to incomestatement, owners equity statement, balance sheet & cash flow?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd