1. If the Marifield Steel Fabrication Company earned $500,000 in net income and paid a cash dividend of $300,000 to its stockholders, what are the firms earnings per share if the firm has 100,000 shares of stock outstanding?

Sales Cost of Goods Sold (COGS) Operating Expenses Interest Expense Income Tax $ $ $ $ $ 18,000,000 10,800,000 4,000,000 1,500,000 595,000 Income Statement Sales $ Cost of Goods Sold (COGS) Gross Profit $ Operating Expenses EBIT $ Interest Expense EBT $ Income Tax Net Income $ 18,000,000 10,800,000 7,200,000 4,000,000 3,200,000 1,500,000 1,700,000 595,000 1,105,000