Draiman, Inc., has sales of $591,000, costs of $267,000, depreciation expense of

Question

Draiman, Inc., has sales of $591,000, costs of $267,000, depreciation expense of $68,000, interest expense of $35,000, and a tax rate of 30 percent. The firm paid out $39,000 in cash dividends and has 46,000 shares of common stock outstanding. (Enter your answer as directed, but do not round intermediate calculations.)

What is the earnings per share figure? (Round your answer to 2 decimal places (e.g., 32.16).)

What is the dividends per share figure? (Round your answer to 2 decimal places (e.g., 32.16).)

Draiman, Inc., has sales of $591,000, costs of $267,000, depreciation expense of $68,000, interest expense of $35,000, and a tax rate of 30 percent. The firm paid out $39,000 in cash dividends and has 46,000 shares of common stock outstanding. (Enter your answer as directed, but do not round intermediate calculations.)

Explanation / Answer

Statement showing computations Particulars Amount Sales         591,000.00 Less Costs       (267,000.00) Less Depreciation         (68,000.00) Less Interest Expense         (35,000.00) Income before Tax         221,000.00 Tax @30%         (66,300.00) Income after Tax or Earning for Eq S/H         154,700.00 No of Shares            46,000.00 EPS = 154,700/46,000                      3.36 Dividends            39,000.00 DPS = 39,000/46,000                      0.85

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