Compute the earnings per share on common stock

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Question - The balance sheet for the Byrne Dareed Corp. showed liabilities and stockholders' equity balances at the end of each year as given below:

 

2010

2011

Current liabilities

$750,000

$600,000

Bonds payable

1,200,000

1,200,000

Preferred 10% stock, $10 par

900,000

750,000

Common stock, $20 par

2,250,000

1,875,000

Additional paid-in capital

450,000

375,000

Retained earnings

750,000

540,000

Net income

375,000

300,000

Market price per share, December 31

65

60

Common stock dividends

75,000

45,000

Based on the data provided, compute the following ratios for 2011:

(1) The rate of earnings on average total stockholders' equity.

 (2) The number of times bond interest requirements were earned.

(3) The rate earned on average common stockholders' equity.

(4) The earnings per share on common stock.

(5) The price-earnings ratio.

(6) Book value per share

(7) Debt-to-equity ratio.

Reference no: EM132441070

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