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

question 62

Essay

The balance sheet for Blan Corporation at the end of the current year indicates the following:
Bonds payable,8% $4,000,000
6% Preferred stock,$100 par 1,000,000
Common stock,$10 par 2,000,000
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.
Required:
Calculate each of the following:
a.Earnings per share
b.Price/earnings ratio
c.Dividend payout ratio
Unit 12-3,

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Definitions:

N

A symbol often used to represent a sample size or the number of observations or units in a dataset.

Sampling Distribution

The spectrum of probabilities for a predetermined statistic, collected from a random sample.

Probability Density Function

A function that describes the likelihood of obtaining the possible values that a random variable can assume, used in continuous probability distributions.

Finite Population Correction Factor

A correction applied to standard errors or variances when sampling from a finite population without replacement, to account for the decreased variability.