earnings per share​

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The Longmire Company recently reported net profits after taxes of
​$34.3
million. It has
3.8
million shares of common stock outstanding and pays preferred dividends of
​$1.6
million per year.
a. Compute the​ firm's earnings per share​ (EPS).
b. Assuming that the stock currently trades at
​$57.46
per​ share, determine what the​ firm's dividend yield would be if it paid
$2.96
per share to common stockholders.
c. What would the​ firm's dividend payout ratio be if it paid
​$2.96
per share in​ dividends?
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