The following information was taken from the financial statement of Fox Resources for December 31 of the current fiscal year:
Common stock, $20 par value (no change during the year)$5,000,000
Preferred 10% stock, $40 par (no change during the year)2,000,000
The net income was $600,000, and the declared dividends on the common stock were $125,000 for the current year. The market price of the common stock is $20 per share.
Calculate for the common stock:
(a) earnings per share
(b) the price-earnings ratio
(c) the dividends per share and the dividend yield
Round to one decimal place except earnings per share, which should be rounded to two decimal places.
Correct Answer:
Verified
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