Earnings per share and price-earnings ratio

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The following information was taken from the financial statements of Finn Resources Inc. for December 31 of the current fiscal year:

Common stock $20 par value (no change during the year) $5,000,000

Preferred $10 stock, $40 par (no change during the year) 800,000

The net income was $600,000 and the declared dividends on the common stock were $125,000 for the current year. The market price of the common stock is $20 per share.

For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield.

Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest cent.

a. Earnings per Share

b. Price-Earnings Ratio

c. Dividends per Share

d. Dividend Yield

Reference no: EM13127946

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