Flower Company, has net profit before taxes 1,200,000 at the of 2018. The company is subject...
Flower Company, has net profit before taxes 1,200,000 at the of 2018. The company is subject to a 25% tax rate. If the preffered stock dividend is 300,000 and 300,000 shares of common stock currently outstanding, calculate the Flower's EPS!
Homework Answers
Net income after taxes=$1,200,000(1-tax rate)
=$1,200,000*(1-0.25)=$900,000
EPS=(Net income after taxes-Preferred dividend)/Common stock outstanding
=(900,000-300,000)/300,000
=$2.
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