Question
Lundun Corporation Income Statement Years Ended December 31, 2019 and 2020 2020 2019 Sales 4,830,000 4,612,000 Cost of goods sold 2,142,000 2,084,000 Gross profit 2,688,000
Lundun Corporation
Income Statement
Years Ended December 31, 2019 and 2020
2020 2019
Sales 4,830,000 4,612,000
Cost of goods sold 2,142,000 2,084,000
Gross profit 2,688,000 2,528,000
Selling and admin expense 1,681,000 1,663,000
Operating income 1,007,000 865,000
Interest expense 42,000 42,000
Earnings before taxes 965,000 823,000
Taxes 290,000 244,000
Net income 675,000 579,000
Shares outstanding 100,000 100,000
Dividend per share $ 1.75 $ 1.50
Required: 1) Calculate the Earnings per Share for 2020
2) Calculate the Dividend Payout Ratio for 2020
3) Assuming the company has a P/E ratio of 12, what is the market price of Lundun shares on December 31, 2020?
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The Essential Nonprofit Fundraising Handbook
Authors: Michael A. Sand, Linda Lysakowski
1st Edition
1601630727, 978-1601630728
