EPS calculations Southland Industries has $60,000 of 5.6% (annual interest) bonds outstanding, 1,800 shares of preferred stock paying an annual dividend of $4 per share, and 4,000 shares of common stock outstanding. Assuming that the firm has a 40% tax rate, compute earnings per share (EPS) for the following levels of EBIT: a. $24,600 b. $29,000 c. $35,500 C... a. Compute earnings per share (EPS) for EBIT of $24,600. Calculate the EPS below: (Round to the nearest dollar except for the EPS which should be rounded to three decimal places.) FRIT
EPS calculations Southland Industries has $60,000 of 5.6% (annual interest) bonds outstanding, 1,800 shares of preferred stock paying an annual dividend of $4 per share, and 4,000 shares of common stock outstanding. Assuming that the firm has a 40% tax rate, compute earnings per share (EPS) for the following levels of EBIT: a. $24,600 b. $29,000 c. $35,500 C... a. Compute earnings per share (EPS) for EBIT of $24,600. Calculate the EPS below: (Round to the nearest dollar except for the EPS which should be rounded to three decimal places.) FRIT
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Transcribed Image Text:EPS calculations Southland Industries has $60,000 of 5.6% (annual interest) bonds outstanding, 1,800 shares of preferred stock paying an annual dividend of $4
per share, and 4,000 shares of common stock outstanding. Assuming that the firm has a 40% tax rate, compute earnings per share (EPS) for the following levels
of EBIT:
a. $24,600
b. $29,000
c. $35,500
a. Compute earnings per share (EPS) for EBIT of $24,600.
Calculate the EPS below: (Round to the nearest dollar except for the EPS which should be rounded to three decimal places.)
EBIT
Less: Interest
Net profits before taxes
Less: Taxes
Net profit after taxes
Less: Preferred dividends
$
$
$
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