Response to the following problem:
The balance sheet for Collier Medical, Inc., at the end of the current fiscal year indicated the following
Bonds payable, 12% (issued in 1996, due in 2016) $1,500,000
Preferred $10 stock, $100 par 250,000
Common stock, $20 par 2,500,000
Income before income tax was $450,000, and income taxes were $125,000 for the current year. Cash dividends paid on common stock during the current year totaled $100,000. The common stock was selling for $50 per share at the end of the year.
Determine each of the following:
(a) number of times bond interest charges were earned,
(b) earnings per share on common stock,
(c) price-earnings ratio,
(d) dividends per share of common stock, and
(e) dividend yield.
Round to two decimal places.