Question
ABC Corp's Dec 31,2019 balance sheet shows retained earnings balance of $300,000. The company paid cash dividends of $5,000 during 2019, and the dec 31,
ABC Corp's Dec 31,2019 balance sheet shows retained earnings balance of $300,000. The company paid cash dividends of $5,000 during 2019, and the dec 31, 2018 balance sheet retained earnings balance sheet was $240000.
A. How much did ABC Corp earn during 2019?
b. Calculate the Dec 31, 2019 EPS, assuming there were 100,000 common shares outstanding throughout 2019.
c. Calculate the payout ratio for 2019 common shares.
D. If ABC's common share price is $7 per share, what is the P/E ratio?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Personal Finance Building Your Future
Authors: Robert B. Walker, Kristy P. Walker
1st edition
9780077861728, 978-0073530659
