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4. Calculating key stock performance metrics. The Rivers Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common

4. Calculating key stock performance metrics. The Rivers Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 million a year. The companys stock currently trades at $60 per share.

a. Compute the stocks earnings per share (EPS).

b. What is the stocks P/E ratio?

c. Determine what the stocks dividend yield would be if it paid $1.75 per share to common stockholders.

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