Here is the income statement for Ginsberg, Inc. Additional information:
1. Common stock outstanding January 1, 2017, was 30,000 shares, and 40,000 shares were outstanding at December 31, 2017.
2. The market price of Gillman, Inc., stock was $15.86 in 2017.
3. Cash dividends of $16,000 were paid, $4,500 of which were to preferred stockholders.
Instructions
Compute the following measures for 2017.
(a) Earnings per share.
(b) Price-earnings ratio.
(c) Payout ratio.
(d) Times interest earned.

Question

Here is the income statement for Ginsberg, Inc.  Additional information:
1. Common stock outstanding January 1, 2017, was 30,000 shares, and 40,000 shares were outstanding at December 31, 2017.
2. The market price of Gillman, Inc., stock was $15.86 in 2017.
3. Cash dividends of $16,000 were paid, $4,500 of which were to preferred stockholders.
Instructions
Compute the following measures for 2017.
(a) Earnings per share.
(b) Price-earnings ratio.
(c) Payout ratio.
(d) Times interest earned.

Quizplus · Accepted Answer

The Answer of Here is the income statement for Ginsberg, Inc.  Additional information:
1. Common stock outstanding January 1, 2017, was 30,000 shares, and 40,000 shares were outstanding at December 31, 2017.
2. The market price of Gillman, Inc., stock was $15.86 in 2017.
3. Cash dividends of $16,000 were paid, $4,500 of which were to preferred stockholders.
Instructions
Compute the following measures for 2017.
(a) Earnings per share.
(b) Price-earnings ratio.
(c) Payout ratio.
(d) Times interest earned.

Here Is the Income Statement for Ginsberg, Inc