Papa Roach Exterminators, Inc., has sales of $586,000, costs of $247,000, depreciation expense of
$43,000, interest expense of $32,000, and a tax rate of 35 percent. The firm paid out $73,000 in cash
dividends, and has 85,000 shares of common stock outstanding.
The earnings per share, or EPS are $ and the dividends per share are $.
EPS = Net income / Shares = $171,600 / 85,000 = $2.02 per share
DPS = Dividends / Shares = $73,000 / 85,000 = $0.86 per share
So Long, Inc., has sales of $27,500, costs of $13,280, depreciation expense of $2,300, and interest expense of
If the tax rate is 35 percent, the operating cash flow, or OCF, is $.
To calculate OCF, we first need the income statement: