LILSO’s group's published annual report showed the following: -Operating profit for the year was EGP 4,000,000. -Interest Expense was EGP 700,000. -The group is subject to 20% taxes. -Number of common shares outstanding was 250,000. -The group has 100,000 Preferred stocks of EGP 15 par value. If you know that the group pays 11% dividends for each preferred stock, answer the following questions a) How much are the total earnings will be available for common stock holders? b) Calculate the Earnings per share (EPS) and the Dividends per share (DPS) if the board of directors decided to retain 70% of the year's earnings for further investment.
LILSO’s group's published annual report showed the following: -Operating profit for the year was EGP 4,000,000. -Interest Expense was EGP 700,000. -The group is subject to 20% taxes. -Number of common shares outstanding was 250,000. -The group has 100,000 Preferred stocks of EGP 15 par value. If you know that the group pays 11% dividends for each preferred stock, answer the following questions a) How much are the total earnings will be available for common stock holders? b) Calculate the Earnings per share (EPS) and the Dividends per share (DPS) if the board of directors decided to retain 70% of the year's earnings for further investment.
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 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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LILSO’s group's published annual report showed the following:
-Operating profit for the year was EGP 4,000,000.
-Interest Expense was EGP 700,000.
-The group is subject to 20% taxes.
-Number of common shares outstanding was 250,000.
-The group has 100,000 Preferred stocks of EGP 15 par value.
If you know that the group pays 11% dividends for each preferred stock , answer the following questions
a) How much are the total earnings will be available for common stock holders?
b) Calculate the Earnings per share (EPS) and the Dividends per share (DPS) if the board of directors decided to retain 70% of the year's earnings for further investment.
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