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3 years ago

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Elite Trailer Parks has an operating profit of $225,000. Interest expense for the year was $35,200; preferred dividends paid wer

e $30,700; and common dividends paid were $36,600. The tax was $64,600. The firm has 20,100 shares of common stock outstanding. a. Calculate the earnings per share and the common dividends per share for Elite Trailer Parks. (Round your answers to 2 decimal places.)

1 answer:

riadik2000 [5.3K]3 years ago

5 0

Answer:

<em>Earnings per share (EPS) =</em> $4.70 per share

<em>Dividend per share (DPS)= </em>$1.82 per share

Explanation:

Elite Trailer Parks

Income statement

$

Operating Profit 225,000.00

less interest expense <u> (35,200.00)</u>

Profit before Tax 189,800.00

Less Tax <u>64,600.00)</u>

Profit after tax 125,200.00

Preferred dividends (<u>30,700.00)</u>

<em>Earnings to common stock </em> <u> 94,500.00</u>

Dividend to Common stock 36,600.00

<em>Earnings per share (EPS)</em>

<em>Earnings per share (EPS) = Earnings available to ordinary shareholders /unit of shares</em>

=$94,500.00/20,100 units

= $4.70 per share

<em>Dividend per share (DPS)</em>

=<em> Total dividend to common stock/ units of shares</em>

=36,600.00/ 20,100 units

=$1.82 per share

<em>Earnings per share(EPS) =</em> $4.70 per share

<em>Dividend per share (DPS)= </em>$1.82 per share

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