Chapter-11BarryBus21

005 10000 30000 650000 690000 2000000 001 20000

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1,000,000 $ 0.01 $ 10,000 30,000 640,000 $ 680,000 27 28 29 Preferred Stock Dividends In addition to its common stock, National Beverage has $1 par value cumulative preferred stock with a 7 percent dividend rate. Assume 100,000 of these shares are outstanding, one year of dividends are in arrears, and the board of directors just declared total dividends of $400,000. How much will each class of stock receive? 30 Preferred Stock Dividends Total dividend declared Preferred stock (cumulative) In Arrears ($1 par 7% 100,000 shares) Current Yr. ($1 par 7% 100,000 shares) Remainder Common stock Remainder $ $ 7,000 7,000 $ $ 400,000 14,000 386,000 386,000 - 31 32 33 34 Price/Earnings (P/E) Ratio The P/E ratio is a measure of the value that investors place on a company's common stock. P/E = Current Stock Price (per share) Earnings Per Share (annual) National Beverage's stock price was $7.74...
View Full Document

This document was uploaded on 03/13/2014 for the course BUS 021 at UC Riverside.

Ask a homework question - tutors are online