Figure 16-2.Financial statements for Grange Company appear below:
Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100.
-The following information is available from the balance sheets at the end of 2014 and 2013 for Shelley Company:
Net income for 2014 and 2013 was $340,000 and $300,000, respectively. Interest expense was $45,000 for 2014 and the tax rate is 30%. Answer the following:

Question

Figure 16-2.Financial statements for Grange Company appear below:
   Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100.
-The following information is available from the balance sheets at the end of 2014 and 2013 for Shelley Company:
  Net income for 2014 and 2013 was $340,000 and $300,000, respectively. Interest expense was $45,000 for 2014 and the tax rate is 30%. Answer the following:

Quizplus · Accepted Answer

The Answer of Figure 16-2.Financial statements for Grange Company appear below:
   Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100.
-The following information is available from the balance sheets at the end of 2014 and 2013 for Shelley Company:
  Net income for 2014 and 2013 was $340,000 and $300,000, respectively. Interest expense was $45,000 for 2014 and the tax rate is 30%. Answer the following:

Figure 16-2.Financial Statements for Grange Company Appear Below