Billys Exterminators, Inc., has sales of $607,000, costs of $314,000, depreciati
ID: 2630072 • Letter: B
Question
Billys Exterminators, Inc., has sales of $607,000, costs of $314,000, depreciation expense of $66,000, interest expense of $43,000, a tax rate of 35 percent and paid out $87,600 in cash dividends. The common stock outstanding is 120,000 shares.
What is the earnings per share? (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16))
What is the dividends per share? (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16))Explanation / Answer
SALES = 607000
LESS:-COST = (314000)
LESS:-DEPRECIATION = (66000)
LESS:- INTERST EXPENSE = (43000)
EARNINGS BEFOR TAX = 184000
LESS:-TAX @ 35% [35% OF 184000] = (64400)
Net Income AFTER TAX = 119600
EPS = 119600/120000 = 1.00
DPS = 87600/120000 = 0.73
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