accounting 459242

The balance sheet for Borglum Company at the end of the current fiscal year indicated the following:

Bonds payable, 10% (issued in 2000, due in 2020)

$5,000,000

Preferred 10% stock, $100 par

1,000,000

Common stock, $10 par

2,000,000

Income before income tax was $1,500,000 and income taxes were $200,000, for the current year. Cash dividends paid on common stock during the current year totaled $150,000. The common stock was selling for $70 per share at the end of the year.

Required:

Determine each of the following:

(1) Number of times interest charges are earned;

(2) Earnings per share on common stock;

(3) Price-earnings ratio;

(4) Dividends per share of common stock; and

(5) Dividend yield.

Round to one decimal place except earnings per share, which should be rounded to two decimal places.