per share
( d) Payout ratio of common stock
%
( e) Return on common stock equity
%
2) On January 1, 2015, Piper Co. issued ten-year bonds with a face value of $ 3,000,000 and a stated interest rate of 10 %, payable semiannually on June 30 and December 31. The bonds were sold to yield 12 %. Table values are:
Present value of 1 for 10 periods at 10 %. 386
Present value of 1 for 10 periods at 12 %. 322
Present value of 1 for 20 periods at 5 %. 377