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

question 160

Essay

The balance sheet for Seuss Company at the end of the current fiscal year indicated the following:

$\begin{array}{|l|r|}\hline \text { Bonds payable, } 10 \% \text { 20-year term } & \$ 5,000,000 \\\hline \text { Preferred } 10 \% \text { stock, } \$ 100 \text { par } & 1,000,000 \\\hline \text { Common stock, } \$ 10 \text { par } & 2,000,000 \\\hline\end{array}$
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 $70 per share at the end of the year.
Determine each of the following:
a. Number of times interest charges are 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.

---

Definitions:

Frustration

A feeling of distress or annoyance stemming from being blocked in achieving a goal.

Perfectionist

An individual who strives for flawlessness, setting exceedingly high performance standards, accompanied by overly critical self-evaluations and concerns regarding others' evaluations.

Equally Attractive Alternatives

Situations where an individual is presented with two or more options that are perceived to be equally desirable and difficult to choose between.

Frustration

An emotional response to opposition, related to anger, annoyance, and disappointment, because a person's body or goals are being blocked.