Exercise 9-12A (Algo) Ratio analysis LO 9-5During Year 3, Baird Corporation reported after-tax net income of $3,640,000. During the year, the number ofshares of stock outstanding remained constant at 9,580 of $100 par, 8 percent preferred stock and 400,000shares of common stock. The company's total stockholders' equity is $19,800,000 at December 31, Year 3. BairdCorporation's common stock was selling at $53 per share at the end of its fiscal year. All dividends for the yearhave been paid, including $4.70 per share to common stockholders.Requireda. Compute the earnings per share. (Round your answer to 2 decimal places.)b. Compute the book value per share of common stock. (Round your answeryto 2 decimal places.)c. Compute the price-earnings ratio. (Round intermediate calculations and final answer to 2 decimal places.)d. Compute the dividend yield. (Round your percentage answer to 2 decimal places. (i.e., 0.2345 should beentered as 23.45).)a. Earnings per shareb. Book value per sharecPrice-earings ratiod. Dividend yieldtimes%

Earnings per share is the per share money earned by the common shareholders. It is determined by…

Answered: During Year 3, Baird Corporation…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Exercise 9-12A (Static) Ratio analysis LO 9-5 During Year 3, Blue Ridge Corporation reported after-tax net income of $4,150,000. During the year, the number of shares of stock outstanding remained constant at 15,000 of $100 par, 9 percent preferred stock and 400,000 shares of common stock. The company's total stockholders' equity is $20,000,000 at December 31, Year 3. Blue Ridge Corporation's common stock was selling at $80 per share at the end of its fiscal year. All dividends for the year have been paid, including $4.80 per share to common stockholders. Required a. Compute the earnings per share. (Round your answer to 2 decimal places.) b. Compute the book value per share of common stock. (Round your answer to 2 decimal places.) c. Compute the price-earnings ratio. (Round intermediate calculations and final answer to 2 decimal places.) d. Compute the dividend yield. (Round your percentage decimal places. (i.e., 0.2345 should be entered as 23.45).) Qu b. Earnings per share Book value…
Chapter 14 Homework The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. Comparative Retained Earnings StatementFor the years ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained Earnings, Jan. 1 3,704,000 3,264,000 Net Income 600,000 550,000 Dividends: On Preferred Stock (10,000) (10,000) On Common Stock (100,000) (100,000) Increase in Retained Earnings 490,000 440,000 Retained Earnings, Dec. 31 4,194,000 3,704,000 Comparative Income StatementFor the years ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales 10,850,000 10,000,000 Cost of goods sold (6,000,000) (5,450,000) Gross Profit 4,850,000 4,550,000 Selling Expenses (2,170,000) (2,000,000) Administrative Expenses (1,627,500) (1,500,000) Total Operating Expenses (3,797,500) (3,500,000) Operating…
k Exercise 11-19A (Algo) Using the P/E ratio LO 11-9 Lake Incorporated and River Incorporated reported net incomes of $164,000 and $124,000, respectively, for the most recent fiscal year. Both companies had 40,000 shares of common stock issued and outstanding. The market price per share of Lake's stock was $57, while River's sold for $61 per share. Required a. Determine the P/E ratio for each company. b. Based on the P/E ratios computed in Requirement a, which company do investors believe has the greater potential for growth in income? Complete this question by entering your answers in the tabs below. Required A Required B Determine the P/E ratio for each company. Note: Do not round intermediate calculations. Round your answers to the nearest whole number. Company Lake, Incorporated River, Incorporated P/E Ratio
Question 6 Melay company had 150,000 equity shares in issue on January 1, 20B. On July 1, 20B it issued 30,000 new shares by way of a 1 for 5 bonus. On October 1, 20B, the entity issued 42,000 new shares for cash at full market price. When calculating basic earnings per share, how many shares should be divided into the profit after tax? CHOICES: 150,000 175,500 222,000 190,500
6 es During Year 3, Zachary Corporation reported after-tax net income of $3,590,000. During the year, the number of shares of stock outstanding remained constant at 9,720 of $100 par, 8 percent preferred stock and 399,000 shares of common stock. The company's total stockholders' equity is $19,600,000 at December 31, Year 3. Zachary Corporation's common stock was selling at $50 per share at the end of its fiscal year. All dividends for the year have been paid, including $5.00 per share to common stockholders. a. Compute the earnings per share. Note: Round your answer to 2 decimal places. b. Compute the book value per share of common stock. Note: Round your answer to 2 decimal places. c. Compute the price-earnings ratio. Note: Round intermediate calculations and final answer to 2 decimal places. d. Compute the dividend yield. Note: Round your percentage answer to 2 decimal places (i.e., 0.2345 should be entered as 23.45). a. Earnings per share b. Book value per share c. Price-earnings…
Selected stock transactions Diamondback Welding & Fabrication Corporation sells and services pipe welding equipment in Illinois. The following selected accounts appear in the ledger of Diamondback Welding & Fabrication at the beginning of the current year: Preferred 2% Stock, $200 par (90,000 shares authorized, 45,000 shares issued) Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $20 par (800,000 shares authorized, 210,000 shares issued) Paid-In Capital in Excess of Par-Common Stock Retained Earnings During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows: a. Purchased 48,000 shares of treasury common for $21 per share. b. Sold 24,000 shares of treasury common for $24 per share. c. Issued 23,000 shares of preferred 2% stock at $217. d. Issued 80,000 shares of common stock at $23, receiving cash. e. Sold 16,000 shares of treasury common for $19 per share. f. Declared cash dividends of $4.00 per…
5 Reporting Changes in Shareholders' Equity The shareholders' equity accounts for Erle Enterprises Inc. at the beginning of the year were as follows: Preferred shares (10,000 issued) $300,000 900,000 Common shares (900,000 issued) Contributed surplus 10,000 Retained earnings 400,000 Accumulated other comprehensive income 25,000 During the year the following transactions/events took place: 1. A 2-for-1 preferred stock split; market price was $30 2. Declared a 10% stock dividend to common shareholders; fair value was $1.20 3. Profit before tax was $200,000 4. Other comprehensive income net of tax was $20,000 5. Inventory was debited $20,000 to correct a previous period error The tax rate for Erle Enterprises is 30%. What would be the shareholders' equity balance at the end of the year? O $1,875,000 O $1,815,000 O $1,917,000 O $1,809,000 7 P CE Save for Later Z 5 € 6 a & 7 8 ڈی prt sc end Subm
40 A company reports a net income of $1,000,000. The weighted number of shares outstanding is 10,000,000, and the total preferred dividends are $50,000. Dividends paid in the prior year were $100,000. How much are the earnings per share? O 10.0 cents 10.5 cents 9.0 cents 9.5 cents NEXT 3 BOOKMARK
QS 13-23 (Algo) Basic earnings per share LO A1 Epic Company earned net income of $908,500 this year. There were 450,000 weighted-average common shares outstanding, and preferred shareholders received a $31,000 cash dividend. Compute Epic Company's basic earnings per share. Choose Numerator: Basic Earnings Per Share 1 Saved Choose Denominator: Basic EPS Basic EPS per share
Chapter 12 Problem Retained Earnings Treasury Stock (58,000 shares, at cost) The following selected transactions occurred during the year: 13,170,000 812,000 Jan. 15. Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $78,300. Mar. 15. Sold all of the treasury stock for $17 per share. Apr. 13. Issued 110,000 shares of common stock for $16 per share. June 14. Declared a 5% stock dividend on common stock, to be capitalized at the market price of the stock, which is $18 per share. July 16. Issued stock for the stock dividend declared on June 14. Oct. 30. Purchased 36,000 shares of treasury stock for $19 per share. Dec. 30. Declared a $0.18-per-share dividend on common stock. 31. Closed the two dividends accounts to Retained Earnings. Required: 1. The January 1 balances in T accounts for the stockholders' equity accounts have been listed below. T accounts for the following accounts…
Chapter 8 Effect of Financing on Earnings Per Share Three different plans for financing a $5,900,000 corporation are under consideration by its organizers. Under each of the following plans, the securities will be issued at their par or face amount, and the income tax rate is estimated at 40% of income. Plan 1 Plan 2 Plan 3 10% bonds $2,950.000 Preferred 10% stock, $100 par $2,950,000 1,475,000 Common stock, $4 par $5,900,000 2,950,000 1,475,000 Total $5,900,000 $5,900,000 $5,900,000 Round the answers to nearest cent. Instructions: 1. Determine for each plan the earnings per share of common stock, assuming that the income before bond interest and income tax is $1,100,000. Earnings per share of common stock Plan 1 per share Plan 2 per share Plan 3 per share 2. Determine for each plan the earnings per share of common stock, assuming that the income before bond interest and income tax is $715,000. Earnings per share of common stock Plan 1 per share Plan 2 per share Plan 3 per share 3.…
Fanning Company’s income statement information follows: Year 3 Year 2 Net sales $ 420,000 $ 257,000 Income before interest and taxes 114,000 83,000 Net income after taxes 55,720 62,900 Interest expense 8,900 7,900 Stockholders’ equity, December 31 (Year 1: $198,000) 312,000 242,000 Common stock, December 31 195,000 172,500 The average number of shares outstanding was 7,800 for Year 3 and 6,900 for Year 2. RequiredCompute the following ratios for Fanning for Year 3 and Year 2. a. Number of times interest was earned. (Round your answers to 2 decimal places.)b. Earnings per share based on the average number of shares outstanding. (Round your answers to 2 decimal places.)c. Price-earnings ratio (market prices: Year 3, $65 per share; Year 2, $76 per share).(Round your intermediate and final answers to 2 decimal places.)d. Return on average equity. (Round your percentage answers to 2 decimal places. (i.e.,…

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