The value of equity is $150,000,000. The return on equity is 15%, the cost of capital is 18% and the company retains 60% of its earnings. Total number of outstanding shares is 1,000,000. Calculate the earnings per share (EPS) and dividend per share (DPS).
The value of equity is $150,000,000. The return on equity is 15%, the cost of capital is 18% and the company retains 60% of its earnings. Total number of outstanding shares is 1,000,000. Calculate the earnings per share (EPS) and dividend per share (DPS).
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
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![The value of equity is $150,000,000. The return on equity is 15%, the cost of capital is 18%
and the company retains 60% of its earnings. Total number of outstanding shares is
1,000,000. Calculate the earnings per share (EPS) and dividend per share (DPS).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F548b7814-7849-4180-9ead-2514b59ae2df%2F451ef205-1214-440f-b913-e3384790e40d%2F1fig6wm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The value of equity is $150,000,000. The return on equity is 15%, the cost of capital is 18%
and the company retains 60% of its earnings. Total number of outstanding shares is
1,000,000. Calculate the earnings per share (EPS) and dividend per share (DPS).
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