The MedTech Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares

Question:

The MedTech Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of outstanding and pays preferred dividends of $1 million per year.
a. Compute the firm’s earnings per share (EPS).
b. Assuming that the stock currently trades at $60 per share, determine what the firm’s yield would be if it paid $2 per share to common stockholders.
c. What would the firm’s payout ratio be if it paid $2 per share in dividends?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...