Griffins Goat Farm, Inc., has sales of $679,000, costs of $341,000, depreciation

Question

Griffins Goat Farm, Inc., has sales of $679,000, costs of $341,000, depreciation expense of $85,000, interest expense of $52,500, a tax rate of 22 percent, and paid out $40,500 in cash dividends. The firm has 29,600 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.)

Explanation / Answer

a.EPS=Net income/Common stock outstanding

=(156390/29600)

=5.28(Approx)

b.Dividend per share=Dividend//Common stock outstanding

=(40500/29600)

=1.37(Approx).

Sales 679000 Less:costs (341000) Less:depreciation expense (85000) Earnings before interest and taxes $253000 Less:interest expense (52500) Earnings before taxes $200500 Less:tax@22% $(44110) Net income $156390

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