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:

Human Nature

The fundamental qualities, such as thought processes, emotions, and behaviors, considered common among all human beings.

Becoming

The process of undergoing change or development towards a specific state or quality.

Proprium

A term used by psychologist Gordon Allport to refer to the core aspects of self that define personal identity and consistency.

Adolescence

The transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.