Question
ABC Corps December 31, 2019 balance sheet shows Retained Earnings balance of $300,000. The company paid cash dividends of $5,000 during 2019, and the December
ABC Corps December 31, 2019 balance sheet shows Retained Earnings balance of $300,000. The company paid cash dividends of $5,000 during 2019, and the December 31, 2018 balance sheet Retained Earnings balance was $240,000.
- How much did ABC Corp earn during 2019? Show your work.
- Calculate the December 31, 2019 EPS, assuming that there were 100,000 common shares outstanding throughout 2019.
- Calculate the payout ratio for 2019 common shares.
- If ABCs common share price is $7 per share, what is the P/E ratio?
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Intermediate Financial Management
Authors: Eugene BrighamPhillip Daves
1st Edition
0324594712, 9780324594713
