Six financial ratios
The balance sheet for Shryer Industries Inc. at the end of the current fiscal year indicated the following:
Income before income tax was $3,400,000, and income taxes were $1,000,000 for the current year. Cash dividends paid on common stock during the current year totaled $100,000. The common stock was selling for $8 per share at the end of the year. Determine each of the following: (a) number of times bond interest charges are earned, (b) number of times preferred dividends are earned, (c) earnings per share on common stock, (d) price-earnings ratio, (e) dividends per share of common stock, and (f) dividend yield. Round to one decimal place except earnings per share, which should be rounded to two decimal places.
