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Screenshot 2019-05-17 13.56.45.png - Net Profit before...

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Unformatted text preview: Net Profit before taxes is $436,000 Company's tax rate is 40% Preferred stock dividends is $64,000 Common stock outstanding is 170,000 shares (a) Calculate the EPS for the year 2015: Net Profit Before taxes $436,000 Less: Tax ($174,400) Net Income $261,600 Less: Preferred dividends ($64,000) Net Earnings to common stock holders $197,600 EPS= Net Earnings to Common stock holders Number of common outstanding shares $197,600 170,000 =$1.16 Therefore, the company's Earnings per Share (EPS) for the year 2015 is $1.16 () Calculate the retained earnings dollar amount, if the firm paid common stock dividends of $0.80 per share: Total dividend amount = 170,000 sharesx $0.80 per share =$136,000 Retained earnings amount =$197, 600-$136, 000 =$61, 600 Therefore, the total retained earnings amount is $61,600...
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  • Summer '08
  • Cadle,J
  • Dividend, Generally Accepted Accounting Principles, net profit

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