1. The ABC Corporation had $500 million in Earnings to Common Shareholders and an EPS of $5. The payout ratio is 24%. Calculate the Dividends per share.

2. Swank Clothiers earned $640 million last year (earnings to common shareholders) and had a 30% payout ratio.

a. Calculate the total dividend payout.

b. Calculate the amount remaining as retained earnings.

3. You are given the following:

Net income to common shareholders = $390 million

Number of common shares outstanding = 243,750,000

Payout ratio = 50%

Current Price Per Share = $55

a. Calculate the EPS

b. Calculate dividends per share

c. Calculate the dividend yield

d. If the dividend yield for similar firms is 2.5%, what would you expect from investors?

4. You hold 1,500 shares in the XYZ Corporation. The 2016 year-end price per share was $125.

Last week, the Corporation announces a 2-1 stock split.

a. Calculate the total value of your shares at year-end 2016

b. Calculate the total value of your shares the day following the stock split (show your work).

5. Suppose the MMM Company has a stock price of $240 and has decided on a 3-1 stock split.

a. Calculate the new price per share.

b. Without using numbers, what do you think the EPS will reflect after the stock split?