The Balance Sheet for Seuss Company at the End of the Current

question 5

Essay

The balance sheet for Seuss Company at the end of the current fiscal year indicated the following:?? $\begin{array}{lr}\text { Bonds payable, } 10 \% \text { (20-year term) } & \$ 5,000,000 \\\text { Preferred } 10 \% \text { stock, } \$ 100 \text { par } & 1,000,000 \\\text { Common stock, } \$ 10 \text { par } & 2,000,000\end{array}$ Income before income tax was $1,500,000, and income taxes were $200,000 for the current year. Cash dividends paid on common stock during the current year totaled $150,000. The common stock sells for $75 per share at the end of the year.

?Determine each of the following:
(a)Times interest earned
(b)Earnings per share on common stock
(c)Price-earnings ratio
(d)Dividends per share of common stock
(e)Dividend yield?Round to one decimal place except earnings per share and dividends per share, which should be rounded to two decimal places.

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Definitions:

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The deduction of a final thought through the combination of several premises that are ordinarily seen as legitimate.

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