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 ***** Common dividends Addition to retained earnings $ 1,450 1,200 50 $ 200 Taxable income - Taxes Net income - Preferred dividends Net income available to common shareholders 112 175 Answer the following questions about Travers & Co.'s income statement.

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 ***** Common dividends Addition to retained earnings $ 1,450 1,200 50 $ 200 Taxable income - Taxes Net income - Preferred dividends Net income available to common shareholders 112 175 Answer the following questions about Travers & Co.'s income statement.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter2: Financial Statements, Cash Flow, And Taxes

Section2.8: Performance Evaluation

Problem 1ST

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