Determine dividends per share of common stock

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Problem - 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, 8% $5,000,000

Preferred $4 stock, $50 par 2,500,000

Common stock, $10 par 5,000,000

Income before income tax expense was $3,000,000, and income taxes were $1,200,000 for the current year. Cash dividends paid on common stock during the current year totaled $1,200,000. The common stock was selling for $32 per share at the end of the year.

Determine each of the following: (a) times interest earned ratio. Round ratios and percentages to one decimal place, except for per-share amounts.

Determine each of the following: (b) earnings per share on common stock. Round ratios and percentages to one decimal place, except for per-share amounts.

Determine each of the following: (c) price-earnings ratio. Round ratios and percentages to one decimal place, except for per-share amounts.

Determine each of the following: (d) dividends per share of common stock. Round ratios and percentages to one decimal place, except for per-share amounts.

Determine each of the following: (e) dividend yield. Round ratios and percentages to one decimal place, except for per-share amounts.

Reference no: EM132778711

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