Reference no: EM131826201

Problem - Shown below is the liabilities and stockholders' equity section of the balance sheet for Ingalls Company and Wilder Company. Each has assets totaling $4,200,000.

Ingalls Co.

Current liabilities $300,000

Long-term debt, 10% 1,200,000

Common stock ($20 par) 2,000,000

Retained earnings (Cash dividends, $220,000) 700,000

Total $4,200,000

Wilder

Current Liabilities $600,000

Common Stock ($20 par) $2,900,000

Retained Earnings (Cash dividends, $328,000) $700,000

Total $4,200,000

For the year each company has earned the same income before interest and taxes.

Ingalls Co.

Income before interest and taxes $1,200,000

Interest expense 120,000

Total 1,080,000

Income taxes (40%) 432,000

Net Income $648,000

Wilder

Income before interest and taxes $1,200,000

Interest expense -0-

Total 1,200,000

Income taxes (40%) 480,000

Net Income $720,000

At year end, the market price of Ingall's stock was $101 per share, and Wilder's was $63.50. Assume balance sheet amounts are representative for the entire year.

What is Ingall's and Wilder's net income per share of stock?