Reference no: EM132190784
Question - Five Measures of Solvency or Profitability
The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:
Bonds payable, 10% $1,800,000
Preferred $5 stock, $50 par 256,000
Common stock, $14 par 313,600.00
Income before income tax was $558,000, and income taxes were $84,400 for the current year. Cash dividends paid on common stock during the current year totaled $123,200. The common stock was selling for $220 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
e. Dividend yield