Harvest Corporation's capital stock at December 31 consisted of the following: (a)Common stock,$2 par value;100,000 shares authorized,issued,and outstanding.(b)10% noncumulative,nonconvertible preferred stock,$100 par value;1,000 shares authorized,issued,and outstanding. Harvest's common stock,which is listed on a major stock exchange,was quoted at $4 per share on December 31.Harvest's net income for the year ended December 31 was $50,000.The yearly preferred dividend was declared.No capital stock transactions occurred.What was the price- earnings ratio on Harvest's common stock at December 31?

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The Answer of Harvest Corporation's capital stock at December 31 consisted of the following: (a)Common stock,$2 par value;100,000 shares authorized,issued,and outstanding.(b)10% noncumulative,nonconvertible preferred stock,$100 par value;1,000 shares authorized,issued,and outstanding. Harvest's common stock,which is listed on a major stock exchange,was quoted at $4 per share on December 31.Harvest's net income for the year ended December 31 was $50,000.The yearly preferred dividend was declared.No capital stock transactions occurred.What was the price- earnings ratio on Harvest's common stock at December 31?

Harvest Corporation's Capital Stock at December 31 Consisted of the Following