Jenkins Services Reported the Following Balances Compute Earnings Per Share for 2016,price/earnings Ratio for 2016,assuming the |

question 178

Essay

Jenkins Services reported the following balances:
$$\begin{array} { | l | r | r | } \hline & \text { December } 31,2016 & \text { December } 31,2015 \\\hline \text { Net Income } & \$ 45,000 & \$ 42,000 \\\hline \text { Preferred Dividends } & 5,000 & 3,000 \\\hline \text { Total Stockholders' Equity } & 375,000 & 368,000 \\\hline \begin{array} { l } \text { Total Stockholders' Equity } \\\text { attributable to Preferred Stock }\end{array} & 40,000 & 24,000 \\\hline \begin{array} { l } \text { Number of common Shares } \\\text { Outstanding }\end{array} & 16,000 & 12,000 \\\hline\end{array}$$ Compute earnings per share for 2016,price/earnings ratio for 2016,assuming the market price on December 31,2016 is $37.50 per share,and the rate of return on common stockholders' equity for 2016.
(Show your computations and round to two decimal places. )

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