Five Measures of Solvency or Profitability The balance sheet for Bearing Industries Inc....
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Five Measures of Solvency or Profitability The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following: Bonds payable, 10% Preferred $5 stock, $100 par Common stock, $9 par $1,300,000 500,000 652,500 Income before income tax was $455,000, and income taxes were $67,500, for the current year. Cash dividends paid on common stock during the current year totaled $152,250. The common stock was selling for $60 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required. a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield
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