For 2014, Weston Corporation Reported After-Tax Net Income of $1,200,000

For 2014, Weston Corporation reported after-tax net income of $1,200,000. During the year, the number of outstanding shares of 6% $100 par preferred stock remained constant at 5,000, and 500,000 shares of common stock were outstanding all year. The company's total stockholders' equity at December 31, 2014, was $12,500,000. Weston's common stock was selling at $38 per share at the end of the year. All dividends for the year were paid, including a dividend of $2.50 per share to common stockholders.
Required:
Compute the following:
(a) Earnings per share (Round your answer to the nearest cent.)
(b) Book value per share of common stock
(c) Price-earnings ratio (Round your answer to one decimal place.)
(d) Dividend yield (Round your answer to one decimal place.)

Correct Answer:

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(a) Earnings per share = ($1,200,000 - 3...

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