Question

Griffin's Goat Farm, Inc., has sales of $669,000, costs of $331,000, depreciation expense of $75,000, interest expense of $47,500, and a tax rate of 22 percent.

Answer 1

Answer:

Earning Per share is $6.09 per share

Dividend Per share is $1.65 per share

Explanation:

Sales                                  $669,000

Costs                                 ($331,000)

Gross Income                   $338,000

Depreciation expense     ($75,000)

Interest expense              ($47,500)

Earning before tax            $215,500

Tax 22 percent                 ($47,410)

Net Income                        168,090

Number of outstanding shares = 27,600

Earning Per share = Net Income / Number of outstanding shares = $168,090 / 27,600 = $6.09 per share

Dividend Payment = $`45,500

Dividend Per share = Dividend Paid / number of outstanding shares = $45,500 / 27,600 = $1.65 pershare