bttpswww mathel com/s abdullah aliyu&3/25/18 8:24 :01 SP Time Limit: 02 00:00 Su
ID: 2552502 • Letter: B
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bttpswww mathel com/s abdullah aliyu&3/25/18 8:24 :01 SP Time Limit: 02 00:00 Subm Chapter 6 Exam 2 of 2 (2 complete) This Test: 100 ptsp tion: 50 pts -x ny reported these figures for 2018 and 2017 e icon to view the figures Data Table 2018 2017 1. Compute Carr Company's earnings per share for 2018. Assume the company paid the Income Statement-partial: mudn 18,600 S 20,000 Net Income @ Requirements Dec. 31, 2018 Dec. 31, 2017 Balance Sheet-partial: Total Assets Paid-in Capital: 280,000 3 275.000 1.Compute Carr Company's earnings per share for 2018. Assume the 2 Compute Carr Company's pricelearnings ratio for 2018. Assume the 3. Compute Carr Company's rate of return on common stockholders' equity company paid the minimum preferred dividend during 2018 Round to the nearest cent Preferred Stock-g%, S10 Par value: 65.000 shares S 140,000 S 140,000 company's market price per share of common stock is $5. Round to two decimals. authorized, 14,000 shares issued and outstanding Common Stock-$3 Par Value: 50,000 shares 90,000 90,000 for 2018. Assume 2018. Round to the nearest whole percent the company paid the minimum preferred dividend during authorized;30,000 shares issued and outstanding Pald-In Capital in Excess of Par-Common 5,000 36,000 271,000 S 5,000 30.000 265,000 Retained Earnings Print Done Total Stockholders' Equity Print Done t or enter any number in the input fields and then continue to the next questionExplanation / Answer
Req A; Earning per share: Net income 18600 Less: Preferred Dividend ($140,000*9%) 12600 Net Income available for Common Stockholder's 6000 Average Number of Common Stock outstanding 30,000 Earning per share (Net income / Average number of Stock) 0.2 Req b: Price earning ratio:; market price / earning per share $ 5 / $ 0.20 = 25 Req C: Rate of return on Common Stockholders: Net Icnome for Common Stockholder's / Average Common Stockholder's equity *100 Net Income for common Stockholdrs: 6000 Average Common Stockholdrs (125000+131000)/2 = 128000 Rate of return : 6000 / 128000 *100 = 4.69%
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