Botanical Gardens Nursery has 7, 500shares of stock outstanding at a marketprice of $18 a share. The earnings pershare are $1.23. The firm has total assetsof $384, 000 and total liabilities of $146,000. Today, the firm is paying aquarterly cash dividend of $.22 a share.What will be the earnings per share afterthe dividend is paid if the tax rate ondividends is 15 percent?

Earnings per share (EPS) shows how much of a company's profits are distributed to each outstanding…

Answered: What will be the earnings per share…

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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Anle Corporation has a current price of $13, is expected to pay a dividend of $2 in one year, and its expected price right after paying that dividend is $22. What is Anle's expected dividend yield? (Round to two decimalplaces.) What is Anle's expected capital gain rate? (Round to two decimalplaces.) What is Anle's equity cost of capital? (Round to two decimalplaces.)
9. CEPS Group announced today that it will begin paying annual dividends next year. The firstdividend will be OMR 0.65 a share. The following dividends will be OMR 0.72, OMR 0.85,OMR 0.89, and OMR 0.95 a share annually for the following 4 years, respectively. After that,dividends are projected to increase by 4 percent per year. How much are you willing to pay tobuy one share of this stock today if your desired rate of return is 11.5 percent? notes: show all calculation
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am. 113.
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What will be the earnings per share after the dividend is paid if the tax rate on dividends is 15 percent?