Question #1:

Acme Widget, Inc. has 1,000 shareholders who own a total of one million shares of its common stock currently selling at $5 per share. The company earned $10,000,000 after taxes. The annual dividend is $0.50 per share. The firm has assets of $125,000,000 and liabilities of $25,000,000. What are the earnings per share for Acme Widget's common stock?

Question #2

Beverly Frickel purchased 100 shares of Gleason Systems stock for $42.50 per share. Her commission for this purchase was $35. She sold the stock two years later for $55 per share and a commission of $50. While she held the stock it paid a dividend of $1.50 per share. What was Beverly's total dollar return on this stock?