Oak Furniture Companys most recent earnings were $300,000. From these earnings, it paid dividends on common equity

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Oak Furniture Company’s most recent earnings were $300,000. From these earnings, it paid dividends on common equity totaling $175,000. There are 50,000 common shares outstanding. The ROE for Widget is 12 percent. Determine the following:
a. i) Earnings per share.
ii) Which can you calculate: leading or lagging EPS?
b. Dividends per share
c. Earnings retention ratio
d. Sustainable growth rate

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Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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