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Answer the following questions about Travers & Co.'s income statement. What is the firm's DPS for 2005? $1.79 $3.13 $1.95 $2.44 $2.03 What is the

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Answer the following questions about Travers & Co.'s income statement.

What is the firm's DPS for 2005?

$1.79

$3.13

$1.95

$2.44

$2.03

What is the basic EPS?

$2.83

$3.20

$4.43

$4.35

$3.08

What is the diluted EPS?

$4.25

$4.43

$2.83

$2.91

$2.70

What is the firm's operating margin?

5.50%

11.74%

16.67%

10.71%

6.29%

What is the firm's net profit margin?

10.71%

11.74%

6.29%

5.50%

16.67%

The income statement for Travers & Co. is shown below. The firm currently has 25.0 million shares of common stock outstanding. However, an analyst has looked at the firm's outstanding warrants and options to determine the likelihood of them being exercised. The analyst has determined that the firm's adjusted number of common shares after the expected dilution is 28.5 million. INCOME STATEMENT (Millions of dollars) Total revenues $ 1,400 - Operating costs excluding depreciation 1,200 Depreciation and amortization expense 50 Operating income (EBIT) $ 150 Interest expense 25 Taxable income $ 125 - Taxes 48 Net income $ 77 - Preferred dividends Net income available to common shareholders $ 77 Common dividends Addition to retained earnings $ $ $ 61 16

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