Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Please solve all. P.s. to solve b and c please do follow as shown in part a. much appreciated. EPS calculations Southland Industries has $65,000

image text in transcribedPlease solve all.

P.s. to solve b and c please do follow as shown in part a.

much appreciated.

EPS calculations Southland Industries has $65,000 of 5.3% (annual interest) bonds outstanding, 1,800 shares of preferred stock paying an annual dividend of $5 per share, and 7,000 shares of common stock outstanding. Assuming that the firm has a 40% tax rate, compute earnings per share (EPS) for the following levels of EBIT: a. $24,500 b. $31,000 c. $34.300 a. Compute earnings per share (EPS) for EBIT of $24,500 Calculate the EPS below: (Round to the nearest dollar except for the EPS which should be rounded to three decimal places.) EBIT S Less: Interest Net profits before taxes $ Less: Taxes $ Net profit after taxes Less: Preferred dividends Earnings available to common shareholders $ EPS b. Compute earnings per share (EPS) for EBIT of $31,000. Calculate the EPS below: (Round to the nearest dollar except for the EPS which should be rounded to three decimal places.) EBIT $ Less: Interest Enter any number in the edit fields and then continue to the next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions