Reference no: EM132612203

Question - Tidepool Corp. earned net income of $156,450 and paid the minimum dividend to preferred stockholders for 2018. Assume that there are no changes in common shares outstanding during 2018. Tidepool's books include the following figures:

Data Table

Preferred Stock-3%, $35 par value; 2,000 shares authorized, 1,000 shares issued and outstanding $35,000

Common Stock-$1 par value; 90,000 shares authorized, 53,000 shares issued, 51,800 shares outstanding 53,000

Paid-In Capital in Excess of Par-Common 490,000

Treasury Stock-Common; 1,200 shares at cost (24,000)

Requirements -

1. Compute Tidepool's EPS for the year.

2. Assume Tidepool's market price of a share of common stock is $9 per share. Compute Tidepool's price/earnings ratio.