3. We have the following information on Costco (COST) on October 20th, 2020: the previous close price $375.56, market cap $166.92 billion, P/E ratio 41.94, and dividend yield of 0.75%. How many shares were outstanding? How much earnings was distributed in total? How much earnings was retained in the corporation?

Managerial Accounting: The Cornerstone of Business Decision-Making
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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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3.
We have the following information on Costco (COST) on October 20th,
2020: the previous close price $375.56, market cap $166.92 billion, P/E ratio 41.94,
and dividend yield of 0.75%. How many shares were outstanding? How much earnings
was distributed in total? How much earnings was retained in the corporation?
Transcribed Image Text:3. We have the following information on Costco (COST) on October 20th, 2020: the previous close price $375.56, market cap $166.92 billion, P/E ratio 41.94, and dividend yield of 0.75%. How many shares were outstanding? How much earnings was distributed in total? How much earnings was retained in the corporation?
Expert Solution
Step 1

Market Cap can be calculated as = Number of Shares outstanding x Price of Stock

P/E ratio = Market Price / Earning per share

Dividend Yield = (Dividend per share / Market price per share) x 100

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