ignmenttakeAssignmentMaindoinvokerta eBook Calculator Earnin

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

Solution

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