XYZ Company has sales of $4,800,000, COGS is 40% of sales, operating expenses are $2,100,000, interest expense $20,000 and depreciation 30,000. Tax rate 40%. Construct their income statement and answer the below.

1. EBT is ___.

760,000

750,000

730,000

400,000

2. Net profit margin is __.

9.1%

12%

9.5%

9.4%

3. Dividend payout is 40%, retained earnings are___.

270,000

273,600

262,800

144,000

4. They have a 50-50 target capital structure of debt/equity. Their stated loan rate is 6% and rs = 12%, what is their WACC?

9%

15.6%

9.6%

7.8%

5. They have 100,000 shares of common stock outstanding, what is their dividend per share? Round to hundredth

1.75

.96

2.74

2.70

6. What is their EPS?

4.80

4.38

4.56

2.40

7. What is the current dividend yield if P0 is $50? Taken to tenth

8.8%

5.4%

5.5%

3.5%

8. If they were to change their dividend payout to 50%, what would their dividend per share be?