Billy’s Exterminators, Inc., has sales of $601,000, costs of $302,000, depreciat
ID: 2726846 • Letter: B
Question
Billy’s Exterminators, Inc., has sales of $601,000, costs of $302,000, depreciation expense of $54,000, interest expense of $37,000, a tax rate of 35 percent, and paid out $77,000 in cash dividends. The firm has 100,000 shares of common stock outstanding.
What are the earnings per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
What are the dividends per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Billy’s Exterminators, Inc., has sales of $601,000, costs of $302,000, depreciation expense of $54,000, interest expense of $37,000, a tax rate of 35 percent, and paid out $77,000 in cash dividends. The firm has 100,000 shares of common stock outstanding.
Explanation / Answer
Particulars
Amount
Sales
$ 601,000
Less: Cost Of Good Sold
$ 302,000
EBDITA
$ 299,000
Less:Depreciation
$ 54,000
EBIT
$ 245,000
Less: Interest Expense
$ 37,000
PBT
$ 208,000
Less: Tax @ 35%
$ 72,800
Profit After Tax
$ 135,200
No of Shares Outstanding=100,000 Shares
Earnings Per Share = Profit After tax/ No of Shares Outstanding
=$135,200/100,000
=$1.35
Dividend Per share= Dividend paid/ No of shares outstanding
=$77,000/100,000
=$0.77
Particulars
Amount
Sales
$ 601,000
Less: Cost Of Good Sold
$ 302,000
EBDITA
$ 299,000
Less:Depreciation
$ 54,000
EBIT
$ 245,000
Less: Interest Expense
$ 37,000
PBT
$ 208,000
Less: Tax @ 35%
$ 72,800
Profit After Tax
$ 135,200
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