Question
Jaburow Mining reported the following results. At the end of 2016, the firm has 50,000 million shares of stock outstanding and the market price of
Jaburow Mining reported the following results. At the end of 2016, the firm has 50,000 million shares of stock outstanding and the market price of its stock was $32.00 per share. What is the earnings per share for 2016?
Income Statement ($ in millions) | |
Sales | 550,000 |
Cost of goods sold | 200,000 |
Depreciation | 100000 |
EBIT | 250,000 |
Interest paid | 50,000 |
Taxable Income | 200,000 |
Taxes (21%) | 42,000 |
Net income | 158,000 |
Balance Sheets ($ in millions) |
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|
|
| |
| 2015 | 2016 |
| 2015 | 2016 |
Cash | 85,000 | 95,000 | Accounts payable | 70,000 | 80,000 |
Accounts receivables | 65,000 | 75,000 |
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|
|
Inventory | 80,000 | 80,000 | Long-term debt | 260,000 | 232,000 |
Total | 230,000 | 250,000 |
| ||
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| Common stock | 700,000 | 780,000 |
Net fixed assets | 1,050,000 | 1,150,000 | Retained earnings | 250,000 | 308,000 |
Total assets | 1,280,000 | 1,400,000 | Total liabilities & equity | 1,280,000 | 1,400,000 |
Multiple Choice
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$2.21
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$3.85
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$1.35
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$3.16
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$1.86
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