Question
3. A firm's net profit is $ 128,000. It gives out $39,750 in dividends for the preferred stockholders, and distribute the rest over the 25,000
3. A firm's net profit is $ 128,000. It gives out $39,750 in dividends for the preferred stockholders, and distribute the rest over the 25,000 shares of common stocks.
a. (2pts.) Calculate the firm's earning per share (EPS).
b. (2pts.) Calculate the firm's price-earnings ratio (P/E) if the market price of the stock is $36.
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
