The balance sheet and income statement shown below are for Koski Inc. Note that

Question

The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 ycars, and the notes payable will be rolled over. Balance Shect (Millions of $ Assets Cash and securitics Accounts receivable Inventories Total current asscts Net plant and equipment Total assets Liabilities and E Accounts payable Accruals 2015 S 2,500 11,500 16,000 $30,000 $20,000 S50,000 S 9,500 5,500 7,000 $22,000 Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained carnings Total common equity Total liabilities and equity 537,000 S 2,000 11 ,000 $13,000 S50,000 Income Statement (Millions of S Net sales Operating costs except depreciation 2015 $87,500 81,813 1,531 4,156 Earnings bef interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net incomc 2,781 973 1,808 Other data Shares outstanding (millions) Common dividends Int rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 500.00 $632.73 6.25% 35% $43.39 Refer to Exhibi 4.1. What is the firm's dividends per share? a. $1.27 b. $1.39 c. $1.14 d. $1.53 e. $1.68

Explanation / Answer

a.$1.27.

dividends per share = common dividends / shares outstanding

=>$632.73 million / 500.00million

=>$1.26546 per share

=>$1.27 per share (rounded off to two decimals).

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