Response to the following problem:
The following information was taken from the financial statements of Monarch Resources Inc. for December 31 of the current fiscal year:
Common stock, $125 par value (no change during the year) $ 12,500,000
Preferred $6 stock, $90 par (no change during the year) 2,250,000
The net income was $1,300,000, and the declared dividends on the common stock were $460,000 for the current year. The market price of the common stock is $92 per share.
For the common stock, determine (a) the earnings per share, (b) the priceearnings ratio, (c) the dividends per share, and (d) the dividend yield.