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