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Chicago Inc. has earnings before interest and taxes (EBIT) = $10 million, interest expense = $4 million, and has a 40% tax rate. Chicago has

Chicago Inc. has earnings before interest and taxes (EBIT) = $10 million, interest expense = $4 million, and has a 40% tax rate. Chicago has 1,000,000 common shares outstanding at a current market price per share = $21.

  1. What is Chicago's EPS?
  2. What is Chicago's P/E ratio?
  3. What is Chicago's market capitalization?
  4. If Chicago pays half of its earnings as dividends: what is the dividend yield?

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