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Rocket Corp earned net income of $153040 and paid the minimum dividend to preferred stockholders for 2018 Assume that there are no changes in common shares outstanding during 2018 Rocket's books

Rocket Corp. earned net income of $153,040 and paid the minimum dividend to preferred stockholders for 2018. Assume that there are no changes in common shares outstanding during 2018. Rocket's books include the following figures: Prefered Stock-6%, $60 par value; 2,000 shares authorized, 1,000 shares issued and outstanding $60,000 Common Stock-$5 par value- $80,000 shares authorized, 48,000 shares issued, 46,700 shares outstanding $240,000 Paid in Capital in Excess of Par- Common $ 470000 Treasury Stock-Common; ,1300 shares at cost (26000) Requirements:- 1. Compute Rocket's EPS for the year. 2.Assume Rocket's market price of a share of common stock is $12 per share. Compute Rocket's price/earnings ratio.

May 18 2020 View more View Less

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