Question
Calculation of EPS and retained earningsEverdeen Mining, Inc., ended 2019 with net profits before taxes of$425,000. The company is subject to a 21% tax rate
Calculation of EPS and retained earningsEverdeen
Mining, Inc., ended 2019 with net profits before taxes of$425,000.
The company is subject to a 21% tax rate and must pay $63,200 in preferred stock dividends before distributing any earnings on the 177,000 shares of common stock currently outstanding.
a. Calculate Everdeen's 2019 earnings per share (EPS).?
b. If the firm paid common stock dividends of $0.81
per share, how many dollars would go to retained earnings?
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
0357517571, 978-0357517574
