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 $.93, which resulted in a dividend yield of 2.5 percent. Assume the company has 80 million shares of stock outstanding and a P/E ratio of 27.

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   Company Symbol Vol Close Chg %Chg %Chg   DRK Enterprises DRK 18,649,130 ?? .26 .45% 8.73%

Explanation / Answer

Here in the given question

Annual divedend = 0.93

Dividend yield = 2.5%

Dividend yield is the rate of dividend compared with the market.

Therefore for MPS = 0.93/2.5% = 37.2

P/E Ratio = 27

P/E ratio = MPS/EPS

27 =37,2 /EPS

EPS = 1.37

Total earnings = 1.37 * 80 = 110.22

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