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Concave Systems presently has earnings before interest and taxes of $5 million. Its interest expenses are $650,000 a year, and it pays $1,050,000 in annual
Concave Systems presently has earnings before interest and taxes of $5 million. Its interest expenses are $650,000 a year, and it pays $1,050,000 in annual dividends to its shareholders. Concave has 1,044,000 common shares outstanding, and its tax rate is 40 percent. Its annual capital expenditures are $800,000. Concave's present price-to-earnings ratio is 17. a. Calculate the company's earnings per share. Round your answer to the nearest cent. $ b. Calculate the company's dividend payout ratio. Round your answer to two decimal places. % c. Calculate the company's dividend yield. Round your answer to two decimal places. %
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