$2$ Preferred Share Dividends

Jasmyn owns Maple Leaf preferred stocks. If this preferred stock pays $6\mathrm{.}25\%$ dividend based on a par value of $$25.$

What is the dollar amount of the dividend for one share of Maple Leaf preferred stock?

$3$ EPS and P$/$E ratios

As a shareholder of an oil company, Emmanuel received its annual report. In the financial statements, the firm reported assets of $$9$ million, liabilities

of $$5$ million, after$-$tax earnings of $$2$ million, and $750,000$ outstanding shares of common stock

a$.$ Calculate the Earnings per share $($EPS$)$ of this oil company's common stock.

b$.$ Assuming a share of this oil company's common stock has a market value $($price$)$ of $$40,$ what is the firm's Price $-$ Earnings $($PE$)$ ratio?

Solution: