Calculate the earnings per share and price earning ratio

Assignment Help Operation Management
Reference no: EM13107963

Selected financial information for The Ohio Company is as follows:

Year 1 Year 2
Stockholder's equity:
Preferred Stock, $10 par, 10% $100,000 $100,000
Common Stock, $10, par 200,000 200,000
Additional paid-in capital common stock 150,000 150,000
Retained Earnings 1,250,000 1,480,000
Total stockholder's equity 1,700,000 1,930,000
Total liabilities and stockholder's equity 300,000,000 3,280,000

Net Income 230,000

Additionally, cash dividends declared and paid during Year 2 totaled $165,000 of which $15,000 were preferred dividends. The market price of a share common stock on December 31, Year 2 was $180,000. Note that there are 20,000 shares of common stock ($200,000 / $10 par) at the start and end of year, and no treasury stock, so the average number of shares outstanding is 20,000.

Use the above information to calculate the earnings per share (EPS) and the price earnings (P-E) ratio as of December 31, Year 2.

 

Reference no: EM13107963

Questions Cloud

Explain how the principles of conditioning are incorporated : aversion therapy utilizes conditioning as a treatment for alcohol and drug abuse. 1.) summarize the article, including the purpose of the study, outcome, and recommendations.
Explain strategies to prevent disruptive behavior : Topic is Should Teachers Have the Authority to Remove Disruptive Students from Their Classes Permanently? Paper must be 1,750-2,100 words long.
Describe advantages of phased system roll out for bombardier : In your opinion, how does the visioning phase of the Bombardier ERP project impact the rest of the project? What are the advantages and disadvantages of a phased system roll-out for Bombardier?
Chi-square test for independence : You are asked to conduct a study to determine if gender has any bearing on the choice of a dog or cat as a pet. You take a random sample of 350 adults and ask each what kind of pet they would prefer, a dog or a cat?
Calculate the earnings per share and price earning ratio : Additionally, cash dividends declared and paid during Year 2 totaled $165,000 of which $15,000 were preferred dividends. The market price of a share common stock on December 31, Year 2 was $180,000.
How semen was viewed in early chinese civilization : What best describes how semen was viewed in early Chinese civilization? evil and cursed sacred and precious unlimited passive or inferior to yin.
Poison goodness fit-chi square test : At a local supermarket receiving dock, the number of truck arrivals per day is recorded for 100 days. Estimate the mean from the sample.
What best describes marriage and sexual relations : What best describes marriage and sexual relations in ancient Rome? They involved couples coming together through passionate love. They were seen as a means to improve one's economic and social standing.
Explain fictional portrayals of courtroom and trial process : Explain fictional portrayals of courtroom, including trial process, roles of the prosecution and defense, roles of the courtroom participants (expand your response from Week Five CheckPoint).

Reviews

Write a Review

Operation Management Questions & Answers

  Pros and cons of united airlines outsourcing strategy

As the industry watches to see how United Airlines' strategy performs against American Airlines' strategy, management at United Airlines is anxiously monitoring market signs to determine its next competitive move.

  Using decision trees analysis and emv

Using decision trees analysis and EMV, what should JDI do? Show the decision tree. Using decision trees analysis and EMV

  Develop aggregate production plan with zero inventory policy

ABC Company, a manufacturer of roofing supplies, has developed monthly forecasts for roofing tiles. The forecasted demand and the expected production days for months March to August in 2013.

  What is the current capacity-number of orders

What is the current capacity-number of orders that can be completed in one night? How much time will it take to complete an order? How much available time do you have each day? What is your time utilization based on the above?

  Discuss the business entity that represents the best choice

discuss the business entity that represents the best choice for each business, taking control, taxation, and liability issues into consideration. Identify laws

  Explain basic factors that must be in place in order

In operations management, as in life, a balanced approach is often best policy. One of best examples of benefits of this in operations management is lean approach. Explain basic factors that must be in place in order to achieve a balanced lean sys..

  Using the most recent statistics available

This report allows for an assesment of world trade flows by country, region, and main product or service categories. Using the most recent statistics available, identify the top five countries that lead in export and import of merchandise, respect..

  Building organizational capabilities support its strategy

Is Henkel's approach to strategy execution shaped sufficiently by its mission and values? How does the company's approach to staffing the organization and building organizational capabilities support its strategy?

  A cosmetic manufacturer''s marketing department

a cosmetic manufacturer's marketing department has developed a linear trend equation that can be used to predict annual sales of its popular hand and foot cream.

  Identifying five differential costs

You are a management analyst for XYZ aircraft manufacturing company. Your company is considering either to purchase or lease manufacturing equipment.

  Food is an integral part of understanding

Food is an integral part of understanding different countries, cultures, and lifestyles. In fact, your company is interested in importing Australian wine to the United States

  Elucidate how would hill do so also at illustrate what costs

If it were necessary to crash to 250 or 240 days, Elucidate how would Hill do so also at illustrate what costs. As noted in the case, suppose that optimistic time estimates can be used as crash times.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd