Determine the dividends per share of common stock


Response to the following problem:

The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following: Bonds payable, 10% (issued in 2002, due in 2022) $1,800,000 Preferred $10 stock, $50 par 88,500 Common stock, $5 par 398,250 Income before income tax was $396,000, and income taxes were $59,700, for the current year. Cash dividends paid on common stock during the current year totaled $89,208. The common stock was selling for $32 per share at the end of the year. Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent.

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: $

f. Dividend yield.

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Financial Accounting: Determine the dividends per share of common stock
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