The value of equity is $150,000,000. The return on equity is 15%, the cost of capital is 18% and the company retains 60% of its earnings. Total number of outstanding shares is 1,000,000. Calculate the earnings par share (EPS) and dividend per share (DPS).

The value of equity is $150,000,000. The return on equity is 15%, the cost of capital is 18% and the company retains 60% of its earnings. Total number of outstanding shares is 1,000,000. Calculate the earnings par share (EPS) and dividend per share (DPS).

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 38MCQ

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