Multiple Choice Answers

The information is condensed data taken from the balance sheet at the end of the year:

Net income: $300,000

Stockholder’s Equity

Preferred 7% stock, $100 par $100,000

Common stock, $20 par $200,000

Paid-in capital in excess of par—common stock $50,000

Retained earnings $300,000

Cash Dividend paid on common stock $ 40,000

Common stock was selling for $56 at the end of the current year.

Calculate Dividend yield on common stock, earnings per share on common stock and, price-earnings ratio on common stock.