Reference no: EM132718791

The following selection financial data pertains to Callow Corporation for the current year ended December 31:

Operating Income $ 900,000
Interest Expense (100,000)
Income before income tax 800,000
Income tax expense (320,000)
Net Income 480,000
Preferred stock dividends (200,000)
Net Income available to common stockholders. $ 280,000

Problem 1: What The times preferred dividend earned ratio is

A. 1.4 to 1

B. 1.7 to 1

C. 2.4 to 1

D. 4.0 to 1