The Income statement for Travers & Co. is shown below. The firm currently has 35.0 million shares of common stock outstanding. However, an analyst has looked at the firm's outstanding warrants and options to determine the likelihood of them being exercised. The analyst has determined that the firm's adjusted number of common shares after the expected dilution is 38.5 million. INCOME STATEMENT (Millions of dollars) Total revenues - Operating costs excluding depreciation - Depreciation and amortization expense Operating income (EBIT) - Interest expense Taxable income - Taxes Common dividends Addition to retained earnings What is the firm's DPS for 2005? Net income 112 - Preferred dividends Net income available to common shareholders s 112 $3.05 O $3.13 O $2.61 O $1.79 O $2.03 What is the basic EPS? Answer the following questions about Travers & Co.'s Income statement. O $4.35 $4.68 O $4.74 $3.20 $3.65 What is the diluted EPS? O $2.91 O $4.26 O $3.65 ******* O $4.68 $1,450 1,200 O $4.25 $200 $ 175
The Income statement for Travers & Co. is shown below. The firm currently has 35.0 million shares of common stock outstanding. However, an analyst has looked at the firm's outstanding warrants and options to determine the likelihood of them being exercised. The analyst has determined that the firm's adjusted number of common shares after the expected dilution is 38.5 million. INCOME STATEMENT (Millions of dollars) Total revenues - Operating costs excluding depreciation - Depreciation and amortization expense Operating income (EBIT) - Interest expense Taxable income - Taxes Common dividends Addition to retained earnings What is the firm's DPS for 2005? Net income 112 - Preferred dividends Net income available to common shareholders s 112 $3.05 O $3.13 O $2.61 O $1.79 O $2.03 What is the basic EPS? Answer the following questions about Travers & Co.'s Income statement. O $4.35 $4.68 O $4.74 $3.20 $3.65 What is the diluted EPS? O $2.91 O $4.26 O $3.65 ******* O $4.68 $1,450 1,200 O $4.25 $200 $ 175
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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Question
![The Income statement for Travers & Co. is shown below. The firm currently has 35.0 million shares of common stock outstanding. However, an analyst
has looked at the firm's outstanding warrants and options to determine the likelihood of them being exercised. The analyst has determined that the
firm's adjusted number of common shares after the expected dilution is 38.5 million.
INCOME STATEMENT
(Millions of dollars)
Total revenues
- Operating costs excluding depreciation
- Depreciation and amortization expense
Operating income (EBIT)
- Interest expense
Taxable income
- Taxes
$
$
Net income
$
- Preferred dividends
Net income available to common shareholders $
$
Common dividends
Addition to retained earnings
What is the firm's DPS for 2005?
$3.05
Answer the following questions about Travers & Co.'s Income statement.
O $3.13
$2.61
O $1.79
O $2.03
What is the basic EPS?
$4.35
$4.68
$4.74
$3.20
$3.65
What is the diluted EPS?
O $2.91
$4.26
$ 1,450
1,200
50
200
25
175
63
112
O $3.65
O $4.68
$4.25
112
71
41](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5d7c6df9-9072-40bc-ad85-7ace55fd8504%2Fb9151fdd-c43e-4eae-af22-dc08818250eb%2F9wkc9z9_processed.png&w=3840&q=75)
Transcribed Image Text:The Income statement for Travers & Co. is shown below. The firm currently has 35.0 million shares of common stock outstanding. However, an analyst
has looked at the firm's outstanding warrants and options to determine the likelihood of them being exercised. The analyst has determined that the
firm's adjusted number of common shares after the expected dilution is 38.5 million.
INCOME STATEMENT
(Millions of dollars)
Total revenues
- Operating costs excluding depreciation
- Depreciation and amortization expense
Operating income (EBIT)
- Interest expense
Taxable income
- Taxes
$
$
Net income
$
- Preferred dividends
Net income available to common shareholders $
$
Common dividends
Addition to retained earnings
What is the firm's DPS for 2005?
$3.05
Answer the following questions about Travers & Co.'s Income statement.
O $3.13
$2.61
O $1.79
O $2.03
What is the basic EPS?
$4.35
$4.68
$4.74
$3.20
$3.65
What is the diluted EPS?
O $2.91
$4.26
$ 1,450
1,200
50
200
25
175
63
112
O $3.65
O $4.68
$4.25
112
71
41
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