Fin 3403 exam 1 questions

Fin 3403 exam 1 questions - 1. In the year just ended a...

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1. In the year just ended a firm had EBIT of $597,000, interest expense of $129,000, a dividend payout ratio of 42% and a tax rate of 34%. The firm has 50,000 shares outstanding. What was the firm’s earnings per share?($6.18) What was the firm’s dividend per share? (2.59) What was the addition to Retained Earnings for the year? ($179,150.40) 2. At the end of the year a firm’s balance sheet shows current liabilities of $300,000, long-term liabilities of $2,500,000, Common Stock (600,000 shares at par value of $1) $600,000, Paid in Surplus of $3,000,000, Retained Earnings of $4,500,000 and net fixed assets of $6,500,000. What would the balance sheet show as the total value of current assets? ($4,400,000) What is the Book Value per share of the firm’s common stock? ($13.50) 3. If you put $6,500 in an account that earns interest at the rate of 6 & compounded annually, how much will you have in the account after 10 years? ($11,640.51) How about if your interest rate was 6% compounded daily? ($11,843.19)
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