Answer: $123,583.90
Explanation:
Given the following Parameters,
Net income = $120,226,
Interest rate = 9%
Tax = 30%
The following formula then applies,
Diluted EPS = (Net income + Interest after tax)/Total outstanding shares outstanding
Now, Interest(Before tax) = $53,300 * 0.09 = $4797
Now we have to calculate it After Tax
= 4,797 (1-tax rate)
= 4,797(1-0.3)
= $3,357.90
The numerator is,
= (Net income + Interest after tax)
= 120,226 + 3,357.90
= $123,583.90
The numerator in the diluted earnings per share calculation for 2018 would be $123,583.90
The companies set their dividend payout, they generally aim for a rate that is when it is sustainable. <span>The </span>dividend payout<span> ratio is the amount of </span>dividends<span> paid to stockholders relative to the amount of total net income of a company. The amount that is not paid out in </span>dividends<span> to stockholders is held by the company for growth. The amount that is kept by the company is called retained earnings.</span>
The current share price is approximately $69.47
<h3>
What is the Share price?</h3>
- The cost of one share of a group of marketable equity shares of a firm is known as the share price.
- Simply put, the stock price is either the lowest possible price or the maximum price someone is ready to pay for the stock.
- Analysts estimate the behavior of asset prices, especially share prices in stock markets, using random walk approaches in economics and financial theory.
- The share price method is predicated on the idea that investors behave logically and impartially and constantly appraise the value of an asset based on expectations for the future.
- In such a scenario, the price is influenced by all available information and is only subject to alteration in response to the release of new information.
Share price = $13.5 × Present value of annuity factor(11%,8)
Share price =$13.5 × 5.146122761
Share price =$69.47(Approx).
Hence, the current share price is approximately $69.47
To learn more about Share price from the given link
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A = Pe^(rt)
<span>A = 5e^(0.02)(8) = 5.87 billion </span>
