(1) Suppose that the company had 1 thousand shares of common stock outstanding at the end of 2014. Compute the earnings per share (EPS) and the dividend per share (DPS) for 2014. (2) Define the dividend payout ratio = DPS/EPS. What is the dividend payout ratio for 2014?
Southeast Systems has the following balance sheet and the income statement. Make sure the unit is in million dollars.
(unit: $ in millions)
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Southeast Systems Balance Sheets |
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2013 |
2014 |
|
2013 |
2014 |
|
Cash |
$50 |
$100 |
Accounts payable |
$450 |
$500 |
|
Accounts receivable |
600 |
700 |
Notes payable |
300 |
400 |
|
Inventory |
500 |
550 |
Long-term debt |
650 |
650 |
|
Net fixed assets |
1,000 |
1,000 |
Common equity |
300 |
300 |
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|
|
|
|
450 |
500 |
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Total Assets |
$2,150 |
$2,350 |
Total Liabilities & Owner’s Equity |
$2,150 |
$2,350 |
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Income Statement |
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|
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2014 |
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Net sales |
$2,370 |
|
Cost of goods sold |
2,070 |
|
|
200 |
|
EBIT |
100 |
|
Interest expenses |
( ) |
|
Taxable income |
80 |
|
Taxes |
28 |
|
Net income |
$52 |
|
Dividends |
$2 |
(1) Suppose that the company had 1 thousand shares of common stock outstanding at the end of 2014. Compute the earnings per share (EPS) and the dividend per share (DPS) for 2014.
(2) Define the dividend payout ratio = DPS/EPS. What is the dividend payout ratio for 2014?
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(1) $100,000; $1,000 (2) 2.00% |
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(1) $100,000; $2,000 (2) 2.00% |
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(1) $52,000; $1,000 (2) 3.85% |
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(1) $52,000; $2,000 (2) 3.85% |
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(1) $100,000; $2,000 (2) 3.85% |
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