28) A company reported net income of $78,000 and had 15,000 common shares outsta

Question

28) A company reported net income of $78,000 and had 15,000 common shares outstanding throughout the current year. At year-end, the price per share of the company's stock was $49.40. What is the company's year-end price-earnings ratio? 28) Answer: Price Earnings Ratio equals: Choose the one alternative that best completes the statement or MULTIPLE CHOICE. answers the question. 29) Clabber Company has bonds outstanding with a par value of $100,000 and a carrving value of $97.300. If the company calls these bonds at a price of $95,000, the gain or loss on retirement is 29) A) S2,300 loss B) $2,700 loss C) $2,700 gain D) $5,000 loss E) $2,300 gain TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 30) The issue price of bonds is found by computing the future value of the bond's cash payments. discounted at the market rate of interest 30)

Explanation / Answer

Answer:

28.EPS = Net Income / No. of shares = 78000 / 15000 = $5.2

P/E ratio = Market price / EPS = $49.40 / $5.2 = 9.5

29.Clabber Company:E.$2300 gain

Calling price - Carrying Value = 97300 - 95000 = 2300 gain

30.False

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