Financial statements for Qiang Company appear below:

Total dividends paid during Year 2 were $61,000,of which $12,000 were for preferred shares.The market price of a common share on December 31,Year 2 was $50.
The preferred shares are convertible to common shares on the basis of four common shares for each preferred share.
Required:
Calculate the following for Year 2:
a)Basic earnings per common share.
b)Fully diluted earnings per common share.
c)Price-earnings ratio (use basic earnings per share).
d)Dividend yield ratio.
e)Return on total assets.
f)Return on common shareholders' equity.
g)Book value per share.

Question

Financial statements for Qiang Company appear below:

Total dividends paid during Year 2 were $61,000,of which $12,000 were for preferred shares.The market price of a common share on December 31,Year 2 was $50.
The preferred shares are convertible to common shares on the basis of four common shares for each preferred share.
Required:
Calculate the following for Year 2:
a)Basic earnings per common share.
b)Fully diluted earnings per common share.
c)Price-earnings ratio (use basic earnings per share).
d)Dividend yield ratio.
e)Return on total assets.
f)Return on common shareholders' equity.
g)Book value per share.

Quizplus · Accepted Answer

The Answer of Financial statements for Qiang Company appear below:

Total dividends paid during Year 2 were $61,000,of which $12,000 were for preferred shares.The market price of a common share on December 31,Year 2 was $50.
The preferred shares are convertible to common shares on the basis of four common shares for each preferred share.
Required:
Calculate the following for Year 2:
a)Basic earnings per common share.
b)Fully diluted earnings per common share.
c)Price-earnings ratio (use basic earnings per share).
d)Dividend yield ratio.
e)Return on total assets.
f)Return on common shareholders' equity.
g)Book value per share.

Financial Statements for Qiang Company Appear Below