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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
• Dividend, Generally Accepted Accounting Principles, net profit

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