Assume you found the following stock quote for DRK Enterprises, Inc., at your fa

Question

Assume you found the following stock quote for DRK Enterprises, Inc., at your favorite Web site. You also found that the stock paid an annual dividend of $.89, which resulted in a dividend yield of 1.6 percent. Assume the company has 92 million shares of stock outstanding and a P/E ratio of 21.

What was net income for the most recent four quarters?

Assume you found the following stock quote for DRK Enterprises, Inc., at your favorite Web site. You also found that the stock paid an annual dividend of $.89, which resulted in a dividend yield of 1.6 percent. Assume the company has 92 million shares of stock outstanding and a P/E ratio of 21.

Explanation / Answer

Here in the given question

Annual dividend = $0.89

Dividend Yeild = 1.6

Dividend yeind is the rate of dividend compared with market price(i.e., MPS)

There for MPS = $0.89/1.6%= $55.625/-

P/E Ratio =21

P/E Ratio = Market price per share/ Earningsd per Share ( i.e., MPS/EPS)

=>21=$55.65/EPS

=> EPS = 2.6488

THERE FORE

TOTAL EARNINGDS FOR 4 QUARTERS = 2.6488*92 millions = $ 243.6896 millions

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