Gorgeous Enterprise Limited is a listed company on the Jamaica Stock Exchange. Its market capitalization as at December 31, 2016 was $650m and the outstanding shares at the same date was 50,000,000 and the authorized shares were 60,000,000. The company also has 10,000,000 preference at par value of $1.20 each with 10 percent interest rate. The company has net income of $30m and paid annual ordinary dividend of $3m. Required: Calculate the market price of the company's share? Calculate the EPS as at December 31, 2016? Calculate the DPS for the accounting period? What are the benefits of EPS and DPS to prospective investors?
Gorgeous Enterprise Limited is a listed company on the Jamaica Stock Exchange. Its market capitalization as at December 31, 2016 was $650m and the outstanding shares at the same date was 50,000,000 and the authorized shares were 60,000,000. The company also has 10,000,000 preference at par value of $1.20 each with 10 percent interest rate. The company has net income of $30m and paid annual ordinary dividend of $3m. Required: Calculate the market price of the company's share? Calculate the EPS as at December 31, 2016? Calculate the DPS for the accounting period? What are the benefits of EPS and DPS to prospective investors?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Gorgeous Enterprise Limited is a listed company on the Jamaica Stock Exchange. Its market capitalization as at
December 31, 2016 was $650m and the outstanding shares at the same date was 50,000,000 and the
authorized shares were 60,000,000. The company also has 10,000,000 preference at par value of $1.20 each
with 10 percent interest rate. The company has net income of $30m and paid annual ordinary dividend of $3m.
Required: Calculate the market price of the company's share? Calculate the EPS as at December 31, 2016?
Calculate the DPS for the accounting period? What are the benefits of EPS and DPS to prospective investors?
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