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 $1.32, which resulted in a dividend yield of 1.7 percent. Assume the company has 71 million shares of stock outstanding and a P/E ratio of 16.

What was net income for the most recent four quarters? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. Omit the "$" sign in your response.)

DAILY YTD 52 WEEK   Company Symbol Vol Close Chg %Chg %Chg High Low %Chg   DRK Enterprises DRK 18,649,130 ?? .26 .45% 8.73% 78.19 51.74 27.4%

Explanation / Answer

div yield = 100 * dividend per share / share price = 100 * 1.32 / P = 1.7

So, P = 77.64705882353

shares = 71 million

share capital = 71 million x 77.64705882353 = 5512.941176471 million

P/E = share capital / net income = 16

net income = 5512.941176471 million / 16 = 344,558,823

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