50.1K

Verified Solution

Link Copied!

QUESTION

How Do I obtain the Preferred Dividends?

2018 2017 Income Statementpartial: Net Income $6,600 $20,000 Dec. 31, 2018 Dec. 31, 2017 Balance Sheetpartial: Total Assets $245,000 $200,000 Paid-In Capital: Preferred Stock4%, $4 Par Value; 50,000 shares $40,000 $40,000 authorized, 10,000 shares issued and outstanding Common Stock$3 Par Value; 45,000 shares 30,000 30,000 authorized; 10,000 shares issued and outstanding Paid-In Capital in Excess of ParCommon 12,000 12,000 Retained Earnings 41,000 36,000 Total Stockholders' Equity $123,000 $118,000

Net income Preferred dividends ) / Ave. # common shrs OS Earnings per share 0.50 6,600 1,600 10,000 Requirement 2. Compute Castillo Company 's price/earnings ratio for 2018. Assume the company 's market price per share of common stock is $7. Round to two decimals. Select the formula, then enter the amounts to calculate the company's price/earnings ratio for 2018. (Abbreviations used: Ave.-average, OS-outstanding, SE = stockholders' equity, shrs shares.) Market price per shareEarnings per share Pricelearnings ratio 0.50 14.00

Answer & Explanation Solved by verified expert

See Answer