P6.5 The MedTech Company recently reported net profit after tax of $15.8 million. It has 2.5 million shares outstanding and pays preference dividends of $1 million per year.

a. Compute the company’s earnings per share (EPS).

b. Assuming that the share currently trades at $60, determine what the company’s dividend yield would be if it paid $2 per share to ordinary shareholders.

c. What would the company’s dividend payout ratio be if it paid $2 per share in dividends?