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The Following Information Was Taken from the Financial Statement of Fox

Question 179

Essay

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\begin{array}{|l|r|}\hline \text { Common stock, } \$ 20 \text { par value no change during the year } & \$ 5,000,000 \\\hline \text { Preferred } 10 \% \text { stock, } \$ 40 \text { par no change during the year } & 2,000,000\\\hline\end{array} 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.
Required:
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:

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a. Earnings per share blured image Net income blured image Prefe...

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