ignment/takeAssignmentMain.do?invoker-&ta; eBook Calculator Earnings per Share,

Question

ignment/takeAssignmentMain.do?invoker-&ta; eBook Calculator Earnings per Share, Price-Earnings Ratio Rebert Inc. showed the following balances for last year: January 1 December 31 Stockholders' equity: Preferred stock, $100 par, 8% Common stock, $3 par Additional paid-in capital* Retained earnings $4,000,000 3,000,000 4,800,000 4,000,000 15,800,000 4,000,000 3,000,000 4,800,000 4,250,000 $16,050,000 Total stockholders' equity For common stock only. Rebert's net income for last year was $3,182,000. Also, assume that the market price per share for Rebert is $51.50. Required: 1. Compute the dollar amount of preferred dividends. 2. Compute the number of common shares. shares Check My Work All work saved. Email Instr

Explanation / Answer

1) Dollar amount of Preferred Dividends 4,000,000*8% 320000 2) Number of common shares 3,000,000/3 1000000 3) Earnings per share (3,182,000-320,000)/1,000,000 2.86 4) Price-earnings ratio 51.50/2.862 18

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