Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 53

F ive measures of solvency or profitability
The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:

Income before income tax was $3,000,000, and income taxes were $1,200,000 for the current year. Cash dividends paid on common stock during the current year totaled $1,200,000. The common stock was selling for $32 per share at the end of the year. Determine each of the following: (A) times interest earned ratio (B) earning per share on common stock, (C) prices-earning ratio, (D) dividends per share of common stock, and (E) dividend yield. (Round ratios and percentages to one decimal place, except for per-share amounts.)