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Unformatted text preview: 365/4.9= 74 days (rounded) 7. Times interest earned ratio: Earnings before interest expense and income taxes/interest expense $38,000/$8,000= 4.75 8. Book value per share: (Total stockholders equity – Preferred stock) / Number of common shares outstanding $170,000-$0/$6,000= $28.00 per share (rounded) Exercise 16-8: Selected Financial Ratios for Common Stockholders 1. Earnings per share: (Net income- Preferred dividends) / Average number of common shares outstanding $21,000-$0/$6,000= $3.50 per share 2. Dividend payout ratio: Dividends per share/ Earnings per share $2.10 per share/$3.50 per share= 60% 3. Dividend yield ratio: Dividends per share/ Market Price $2.10 per share/ $42per share= 5% 4. Price-earnings ratio: Market price per share/ Earnings per share $42 per share/$3.50 per share= 12...
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This note was uploaded on 06/16/2010 for the course ACCT 3000 taught by Professor Luide during the Spring '10 term at Alaska Anch.
- Spring '10
- Managerial Accounting