Financial Statements for Qiang Company Appear Below

question 100

Essay

Financial statements for Qiang Company appear below:


Total dividends paid during Year 2 were $61,000,of which $12,000 were for preferred shares.The market price of a common share on December 31,Year 2 was $50.
The preferred shares are convertible to common shares on the basis of four common shares for each preferred share.
Required:
Calculate the following for Year 2:
a)Basic earnings per common share.
b)Fully diluted earnings per common share.
c)Price-earnings ratio (use basic earnings per share).
d)Dividend yield ratio.
e)Return on total assets.
f)Return on common shareholders' equity.
g)Book value per share.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor used in the production process.

Output

The total amount of goods and services produced by an economy, company, or machine over a specified period.

Output

The amount of products or services that are generated by a company, sector, or nation within a specific timeframe.

Shipping Costs

Expenses associated with the transportation of goods from one location to another, often influencing pricing and supply chain decisions.