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.