The Balance Sheet for Blan Corporation at the End of the Current

question 103

Essay

The balance sheet for Blan Corporation at the end of the current year indicates the following:


Income before income taxes was $480,000 and income taxes expense for the current year amounted to $144,000.Cash dividends paid on common stock were $300,000,and the common stock was selling for $22 per share at the end of the year.There were no ownership changes during the year.
a.Earnings per share
b.Price/earnings ratio
c.Dividend payout ratio

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Definitions:

Distends

Becomes inflated, stretches out.

Inflated

Increased or exaggerated beyond reasonable or normal limits, often referring to prices, ego, or statistics.

Radiograph

A record produced on a photographic plate, film, or paper by the action of X-ray or radium.

Photographic Plate

An early type of photography that uses a flat glass surface coated with a photosensitive chemical to capture images, now mostly replaced by digital methods.