Griffins Goat Farm, Inc., has sales of $664,000, costs of $326,000, depreciation
ID: 2813669 • Letter: G
Question
Griffins Goat Farm, Inc., has sales of $664,000, costs of $326,000, depreciation expense of $70,000, interest expense of $45,000, a tax rate of 22 percent, and paid out $46,000 in cash dividends. The firm has 26,600 shares of common stock outstanding. a. What are the earnings per share figure? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What are the dividends per share figure? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Earnings per share b. Dividends per shareExplanation / Answer
a.EPS=Net income/Common stock outstanding
=(173940/26600)
which is equal to
=6.54(Approx)
b.Dividend per share=Total dividends/Common stock outstanding
=(46000/26600)
=1.73(Approx).
Sales 664000 Less:costs (326000) Less:depreciation expense (70000) Earnings before interest and taxes $268000 Less:interest expense (45000) Earnings before taxes $223000 Less:tax@22% ($49060) Net income $173940.Related Questions
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