The Stockholder's Equity section of the balance sheet of Deely Corporation is shown below. Determine the equity per share, the rate of return on stockholder's equity, the earnings per share, and the price-earnings ration. Show work uner "Calculations" and round off figures to two decimal places.
Stockholder's Equity
Paid in Capital
Common Stock,$30 par (50,000 shares authorized,
25<000 shares issued) $750,000
Premium on Common Stock 100,000
Total Paid-in Capital 850,000
Retained Earnings 120,000
Total Stockholder's Equity $970,000
Net income after income tax for the year is $130,000. The present market price of the stock is $40 per share
1.) Equity per share ______
2.) Rate of Return on Stockholders' Equity______
3) Earnings per share of common stock ______
4.) Price-earnings ration ______