On June 30, 2015, Sharper Corporation s common stock is priced at $29.00 per share before any stock dividend or split, and the stockholders equity section of its balance sheet appears as follows.
Common stock – $4 par value, 80,000 shares authorized, 32,000 shares issued and outstanding: $128,000
Paid-in capital in excess of par value, common stock: 100,000
Retained earnings: 228,000
Total stockholders equity: $456,000
1. Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock’s par value.
2. Calculate the retained earnings balance, total stockholders equity and number of outstanding shares.
Boilermaker Inc. reported taxable income of $870,000 this year and paid federal income taxes of $295,800. Not included in the company s computation of taxable income is tax-exempt income of $37,000, disallowed meals and entertainment expenses of $33,250, and disallowed expenses related to the tax- exempt income of $3,200. Boilermaker deducted depreciation of $136,000 on its tax return. Under the alternative (E&P) depreciation method, the deduction would have been $64,500.
Compute the company’s current E&
Financial information for Retro Designs includes the following selected data:
| Net income (in millions) | $175 |
| Preferred stock (in millions) | $25 |
| Common shares outstanding (in millions) | 250 |
| Stock price | $10.00 |
What is the company’s price-earnings ratio?
A. 14.3
B. 16.7
C. 5.7
D. 15.0
