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

question 172

Essay

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

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Definitions:

Transform Fault

A type of strike-slip fault where two tectonic plates slide past each other horizontally.

Reefs

Structures in the ocean, often made up of coral or rock, that rise close to or above the surface of the water.

Central Atlantic

The central portion of the Atlantic Ocean, situated between the Americas to the west and Europe and Africa to the east.

Two Hundred Million

Indicates a numerical quantity, often used in geological contexts to denote age, such as 200 million years ago.