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8. General Motors has 400,000 shares of common stock outstanding, net income after tax of $1.2 million, retained earnings of $17 million, and total equity

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8. General Motors has 400,000 shares of common stock outstanding, net income after tax of $1.2 million, retained earnings of $17 million, and total equity of $35 million. What is GM's earnings per share? a. $3.00 b. $4.00 c. $4.25 d. $8.75 e. $13.50 9. Orangeburg Inc. earns net income of $25,000 in a given year and the company retained carnings increase $15,000 for that same year. The payout ratio is a. 25% b. 40% c. 60% d. 75% e. 100% 10. You are given the following information: Stockholders' equity =$1,250; price/earnings ratio =5; shares outstanding =25; market/book ratio =1.5. Calculate the market price of a share of the company's stock. a. $33.33 b. $75.00 c. $10.00 d. $166.67 e. $133.32

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