Billy’s Exterminators, Inc., has sales of $740,000, costs of $288,000, depreciat

Question

Billy’s Exterminators, Inc., has sales of $740,000, costs of $288,000, depreciation expense of $40,000, interest expense of $30,000, a tax rate of 35 percent and paid out $50,600 in cash dividends. The common stock outstanding is 92,000 shares.

What is the earnings per share? (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16))

What is the dividends per share? (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

Sales          740,000 cost          288,000 deprecition            40,000 interest            30,000 Income before tax          382,000 Tax @ 35%          133,700 Income after tax          248,300 Shares outstanding            92,000 Earning per share = income/share outstanding                 2.70 Dividends            50,600 Shares outstanding            92,000 dividend per share = cash dividends/share outstanding                 0.55

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