Question
1)Please show work. a) ABC Co. has $12,000,000 in sales, COGS 50% of sales, operating costs of $1,200,000 plus interest expense of $80,000 and depreciation
1)Please show work.
a) ABC Co. has $12,000,000 in sales, COGS 50% of sales, operating costs of $1,200,000 plus interest expense of $80,000 and depreciation expense of$40,000. Tax rate is 40%. What is their net income? If they have 1 million shares of common stock outstanding what is their EPS?
b)ABC Co. has $12,000,000 in sales, COGS 50% of sales, operating costs of $1,200,000 plus interest expense of $80,000 and depreciation expense of $40,000. Tax rate is 40%. If they retained 80% and paid 20% in dividends, what is their dividend payout?
c)ABC Co. has $12,000,000 in sales, COGS 50% of sales, operating costs of $1,200,000 plus interest expense of $80,000 and depreciation expense of $40,000. Tax rate is 40%. If they retained 80% and paid 20% in dividends, what is their dividend yield if the current stock price is $26?
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The New Finance Overreaction Complexity And Their Consequences
Authors: Robert A. Haugen
4th International Edition
0132775875, 9780132775878
