Example

Gorgeous Enterprise Limited is a listed company on the Jamaica Stock Exchange. Its market capitalization as at December $31,2016$ was $$650$m and the outstanding shares at the same date was $50,000,000$ and the authorized shares were $60,000,000.$ The company also has $10,000,000$ preference at par value of $$1\mathrm{.}20$ each with $10$ percent interest rate. The company has net income of $$30$m and paid annual ordinary dividend of $$3$m$.$

Required:

a$.$ Calculate the market price of the company$$s share?

b$.$ Calculate the EPS as at December $31,2016?$

c$.$ Calculate the DPS for the accounting period?

d$.$ What are the benefits of EPS and DPS to prospective investors?