Determine earnings per share on common stock

Assignment Help Accounting Basics
Reference no: EM132879482

Problem - Six measures of solvency or profitability

The balance sheet for Kronos Inc. at the end of the current fiscal year indicated the following:

Bonds payable, 10% (issued in 2002, due in 2022) $3,750,000

Preferred $4 stock, $40 par 2,000,000

Common stock, $10 par 3,600,000

Income before income tax was $2,400,000, and income taxes were $400,000, for the current year. Cash dividends paid on common stock during the current year totaled $720,000. The common stock was selling for $72 per share at the end of the year. Determine each of the following:

(a) number of times bond interest charges are earned

(b) number of times preferred dividends are earned,

(c) earnings per share on common stock

(d) price-earnings ratio

(e) dividends per share of common stock

(f) dividend yield.

Reference no: EM132879482

Questions Cloud

Explain and apply learning about ethics : Apply learning about ethics, Explain strategies could undertake to respond to concerns about discrepancies between personal or agency practice ethical practices
Design an effective performance appraisal program : Design an effective performance appraisal program for managers at Northwest Tank Lanes. Provide a rationale for the performance management system designed.
Malaria was once prevalent in europe : Malaria was once prevalent in Europe and the USA in the early 1900s but was successful eliminated from these areas.
Explain strategies could undertake to respond to concern : Explain strategies you could undertake to respond to concerns about discrepancies between personal and/or agency practice ethical practices
Determine earnings per share on common stock : Income before income tax was $2,400,000, and income taxes were $400,000, for the current year. Determine earnings per share on common stock
What the company accounts receivable balance on june is : What the company's accounts receivable balance on June 30 is? DC Company had a Cash balance of $25,000, an Accounts Receivable balance of $50,000.
Claims in granted patent vs. published application : Compare the claims in the granted patent vs. the published application. What is the patent number of the US granted patent described above?
How would such a shift change the od interventions : How would such a shift change the OD interventions and talent development, especially when more organizations are operating in virtual environments?
Termination paper work for an employee : This morning the Boss entered your office and told you that he wanted you to put together termination paper work for an employee, John. He said that he just fou

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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