Elite Trailer Parks has an operating profit of $257,000. Interest expense for the year was $36,500; preferred dividends paid were $30,500; and common dividends paid were $38,300. The tax was $63,800. 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.

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Business

Kolby Jenkins

16 August, 13:46

Elite Trailer Parks has an operating profit of $257,000. Interest expense for the year was $36,500; preferred dividends paid were $30,500; and common dividends paid were $38,300. The tax was $63,800. 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.

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Jeremiah Hughes · Answer 1

EPS 1.30

Dividends per Share: 1.91

Explanation:

EBIT (earning before interest and taxes) 257,000

interest expense: 36,500

tax expense: 63,800 total (100,300)

Net income 56,700

Earnings per share:

(net income - preferred dividends) / common stock outstanding

(56,700 - 30,500) / 20,100 = 1,303482 = 1.30

Dividend per share:

common stock dividends / common stock outstanding

38,300 / 20,100 = 1,90547 = 1.91