Billy's Exterminators, Inc., has sales of $817,000, costs of $343,000, depreciation expense of $51,000, interest expense of $38,000, and a tax rate of 21 percent. The firm just paid out $95,000 in cash dividends. The company has 90,000 shares of common stock outstanding. What is the earnings per share, or EPS, figure? What is the dividends per share?
| Sales | 817000 |
| Less:costs | 343000 |
| Less:depreciation | 51000 |
| EBIT | $423000 |
| Less:interest expense | 38000 |
| EBT | $385000 |
| Less:tax@21%($385000*21%) | $80850 |
| Net income | $304150 |
a.EPS=Net income/Common stock outstanding
=$304150/90,000
=3.38(Approx).
b.Dividend per share=Dividend/Common stock outstanding
=(95000/90,000)
=1.06(Approx).
Billy's Exterminators, Inc., has sales of $817,000, costs of $343,000, depreciation expense of $51,000, interest expense...