Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Simon Inc. has earnings before interest and taxes (BIT) = $19 million, interest expense = $6 million, and has a 40% tax rate. Simon has

Simon Inc. has earnings before interest and taxes (BIT) = $19 million, interest expense = $6 million, and has a 40% tax rate. Simon has 2,000,000 common shares outstanding at a current market price per share = $18.50.

a.What is Simon's EPS?

b.What is Simon's P/E ratio?

c.What is Simon's market capitalization?

d.If Simon pays half of its earnings as dividends: what is the dividend yield?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Finance And Industrial Policy

Authors: Giovanni Cozzi, Susan Newman, Jan Toporowski

1st Edition

0198744501, 978-0198744504

More Books

Students also viewed these Finance questions

Question

5. In Prob. I find a linearly independent set of solution vectors.

Answered: 1 week ago

Question

What are business strategies in entrepreneurship

Answered: 1 week ago