Earnings per Share, P/E Ratio, Market Capitalization Consider the following company: Company XYZ (000s) Revenues Expenses $100,000 87,000 Total Shares outstanding: 4,126,985 Stock Price: $72.95 Calculate: EPS is Earnings/# shares: P/E is Stock Price / EPS: Market Capitalization is Stock Price x #shares: If XYZ pays $1.78/share in dividends, what was the dividend payout %? What % did the company retain in earnings? If a company retains its earnings rather than paying dividends to shareholders, the retained earnings are reinvested in the company. Consider GoTerriers, Inc. For every dollar invested in the company, earnings increase by 15 cents ($0.15). In other words, GoTerriers earns a 15% return on its investment. If GoTerriers only source of new investment is the earnings that it retains (does not pay in dividends), calculate the Year 2 earnings for the following dividend payout scenarios. Assume GoTerriers has 1,000 shares. Year 1 earnings: $12,000 Dividend: $0/share Dividend Payout Ratio: Year 2 earnings: Dividend Payout Ratio: Year 2 earnings: Dividend: $5/share Dividend: $12/share Dividend Payout Ratio: Year 2 earnings