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?
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
