Homework Answers
EPS for the firm = Net Income / Number of outstanding shares = 48/20 = $ 2.4
Dividend per share = 1
Total Dividends = 1* 20 = 20 M
Retained earnings = 48 - 20 = 28 M
This retained earnings is an addition to equity in the balance sheet and would cause the equity investment to increase in year 8
Answer is 1)
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