Fowler Company reported these figures for 2018and 2017: Data table: 2017 2018
Income Statement—partial:
Net Income $18,200 $25,000
Dec. 31, 2018 Dec. 31, 2017
Balance Sheet—partial:
Total Assets $265,000 $275,000
Paid-In Capital:
Preferred Stock—5%, $6 Par Value; 55,000 shares $84,000 $84,000
authorized, 14,000 shares issued and outstanding
Common Stock—$3 Par Value; 70,000 shares 105,000 105,000
authorized; 35,000 shares issued and outstanding
Paid-In Capital in Excess of Par—Common 5,000 5,000
Retained Earnings 59,000 45,000
Total Stockholders' Equity $253,000 $239,000
Requirements:
1. Compute Fowler Company's earnings per share for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest cent.
2. Compute Fowler Company's price/earnings ratio for 2018. Assume the company's market price per share of common stock is $4. Round to two decimals.
3. Compute Fowler Company's rate of return on common stockholders' equity for 2018. Assume the company paid the minimum preferred dividend during 2018. Round to the nearest whole percent.