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If a company earns net income of $48 million in Year 10, has 18 million shares of common stock outstanding, pays a dividend of $0.50

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If a company earns net income of $48 million in Year 10, has 18 million shares of common stock outstanding, pays a dividend of $0.50 per share, and has annual interest costs of $8 million, then o the company's earnings per share for Year 10 would be $2.67, its retained earnings for Year 8 would be $40 million, and its cash flow from operations would be $31 million. o the company's EPS for Year 10 would be $2.67 and its retained earnings for Year 10 would be $31 million (net income of $48 million less interest payments of $8 million less dividend payments of $9 million), the $31 million in retained earnings would in turn be treated as $31 million of additional equity investment by stockholders on the company's year-end Balance Sheet o the company's EPS for Year 10 would be $8.00 and its retained earnings for Year 10 would be $39 million (net income of $48 million less dividend payments of $9 million), the $40 million in retained earnings would in turn be treated as $40 million of additional equity investment by stockholders on the company's year-end Balance Sheet o the company's $9 million dividend payout for the year would reduce the company's Year 10 earnings per share by $0.50. o the company's EPS for Year 10 would be $2.67 and its retained earnings for Year 10 would be $39 million (net income of $48 million less dividend payments of $9 million), the $39 million in retained earnings would in turn be treated as $39 million of additional equity investment by stockholders on the company's year-end Balance Sheet

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