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The company’s market capitalization as at December 31, 2019 was $750m and the outstanding shares at the same date was 40m and the authorized shares were 50m.  The company also has 12m preference at par value of $1.10 each with 9.5 percent interest rate per annum.  The par value for its equity shares was $2.70 each and net income before preference dividend as at December 31, 2019 was $45m and dividend payment for the current period was $6m.  The value of the company’s non-current assets were $470m and the total liabilities were $65m.   Required: A: Calculate the market price of the company’s share?  Calculate the EPS as at December 31, 2019?  Calculate the DPS for the accounting period?

The company’s market capitalization as at December 31, 2019 was $750m and the outstanding shares at the same date was 40m and the authorized shares were 50m.  The company also has 12m preference at par value of $1.10 each with 9.5 percent interest rate per annum.  The par value for its equity shares was $2.70 each and net income before preference dividend as at December 31, 2019 was $45m and dividend payment for the current period was $6m.  The value of the company’s non-current assets were $470m and the total liabilities were $65m.   Required: A: Calculate the market price of the company’s share?  Calculate the EPS as at December 31, 2019?  Calculate the DPS for the accounting period?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 25E
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 The company’s market capitalization as at December 31, 2019 was $750m and the outstanding shares at the same date was 40m and the authorized shares were 50m.  The company also has 12m preference at par value of $1.10 each with 9.5 percent interest rate per annum.  The par value for its equity shares was $2.70 each and net income before preference dividend as at December 31, 2019 was $45m and dividend payment for the current period was $6m.  The value of the company’s non-current assets were $470m and the total liabilities were $65m.

 

Required:

A:

  1. Calculate the market price of the company’s share? 
  2. Calculate the EPS as at December 31, 2019? 
  3. Calculate the DPS for the accounting period?
  4. Calculate the Dividend Yield?  
  5. Calculate the Price Earnings Ratio 
  6. What was the firm’s dividend payout and retention ratios?
  7. What is the quarterly dividend payments preference shareholders received from the company? 
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