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

question 71

Essay

The balance sheet for Seuss Company at the end of the current fiscal year indicated the following:
​ $\begin{array}{|l|r|}\hline \text { Bonds payable, } 10 \%(20 \text {-year term) } & \$ 5,000,000 \\\hline \text { Preferred } 10 \% \text { stock, } \$ 100 \text { par } & 1,000,000 \\\hline \text { Common stock, } \$ 10 \text { par } & 2,000,000 \\\hline\end{array}$ ​
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 $75 per share at the end of the year.
​
Determine each of the following: (a) Times interest 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.

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