User Account

All Pages

Compute the price/earnings ratio

Assignment Help Accounting Basics
Reference no: EM13869259

Sardel Company reported net income of $29,975 for 2010. During all of 2010 the company had 1,000 shares of 10%, $100 par, nonconvertible preferred stock outstanding, on which the year's dividends had been paid. At the beginning of 2010 the company had 7,000 shares of common stock outstanding. On April 2, 2010, the company issued another 2,000 shares of common stock, so that 9,000 common shares were outstanding at the end of 2010. Common dividends of $17,000 had been paid during 2010. At the end of 2010 the market price per share of common stock was $17.50.

Required:
1. Compute the basic earnings per share of Sardel Company for 2010.
2. Compute the price/earnings ratio for 2010. 

Reference no: EM13869259

Questions Cloud

How many trits are needed to hold a six-bit number : How many trits are needed to hold a 6-bit number? Give an expression for the number of trits needed to hold n bits.
Compute the data rate of the human eye using information : Compute the data rate of the human eye using the following information. The visual field consists of about 106 elements (pixels). Each pixel can be reduced to a superposition of the three primary colors.
Write an original analysis of a piece of dramatic : Write an original analysis of a piece of dramatic writing from Raisin in the Sun. Writing an analysis of dramatic writing commonly entails formulating and arguing a thesis that synthesizes a thematic aspect of the writing with a formal one
This overstatement of pretax income was material : This overstatement of pretax income was material. The related income tax effect of this error was $12,000 for Year 1. Record the correcting entries in Year 2.
Compute the price/earnings ratio : Sardel Company reported net income of $29,975 for 2010. During all of 2010 the company had 1,000 shares of 10%, $100 par, nonconvertible preferred stock outstanding, on which the year's dividends had been paid. At the beginning of 2010 the company ha..
Draft an income statement and statement of cash flows : On January 3, 2013 Mandy MacMahaninvested $500,000 to open her first restaurant Alabama Barbecued Chicken in her hometown in Alabama.  Her town is known to be a trucker stop and a tourist destination as it has several antique and preserved landmarks ..
What is the total information capacity of the human genome : What is the total information capacity (in bits) of the human genome? What is the maximum information capacity (in bits) of the average gene?
Dividends on this preferred stock were paid : Jamieson Company earned net income of $43,800 during 2010. At the beginning of 2010 it had 10,000 shares of common stock outstanding;
About healthsouth used unethical accounting measures : HealthSouth used unethical accounting measures

Reviews

Write a Review

Accounting Basics Questions & Answers

  An anticipated purchase of equipment for 580000 with a

an anticipated purchase of equipment for 580000 with a useful life of 8 years and no residual value is expected to

  First large-scale nuclear power plant

The world's first large-scale nuclear power plant began operations in:

  Client letter-constructive dividends-redemptions

Imagine that youare a Certified Public Accountant (CPA)witha new client who needs an opinion on the most advantageous capital structure of a new corporation.

  Xavier and yolanda have original investments of 50000 and

xavier and yolanda have original investments of 50000 and 100000 respectively in a partnership. the articles of

  Part of a corporate risk assessment audit

1) Which of the following would not be part of a corporate risk assessment audit:

  For lodes company the relevant range of production is

for lodes company the relevant range of production is 40-80 of cppacity. at 40 of capacity a variable cost is 4000 and

  Green golf accessories sells golf shoes gloves and a

green golf accessories sells golf shoes gloves and a laser-guided range-finder that measures distance. shown below are

  Determining accountant computations-auto tires

Auto Tires has been in the tire business for four years. It rents a building but owns all of its equipment. All employees are paid a fixed salary except for the busy season (April - June), when temporary help is hired by the hour. Utilities and ot..

  If 2000 is invested now 2500 two years from now and 3000

if 2000 is invested now 2500 two years from now and 3000 four years from now at an interest rate of 7 what will be the

  Prepare the journal entry to record the acquisition

An appraisal showed that the fair market value of inventory was $300,000 and that the fair market value of the plant assets was $1,250,000. The fair market value of the receivables is equal to book value. The agreed purchase price was $2,200,000 m..

  Determine the unrealized holding gain or loss on the note

Shonen Knife Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 11% and has a carrying value of $16,000. At year-end, Shonen Knife's borrowing rate has declined; the fair ..

  What is the payout policy

What is the payout policy and list and explain the two primary ways in which a firm can distribute cash to shareholders.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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