5- DUSKY has annual sales of $40 million with the following costs:Cost of goods sold $12 million, Fixed costs $16 million, Depreciationexpense $300,000, Interest expense $200,000, tax rate 30%, dividendpayout rate 20%, 1 million shares of common stock. What is the EPS,earnings per share? State as a number.6- DUSKY has annual sales of $40 million with the following costs:Cost of goods sold $12 million, Fixed costs $16 million, Depreciationexpense $300,000, Interest expense $200,000, tax rate 30%, dividendpayout rate 20%, 1 million shares of common stock. Last year their netprofit margin was 28%. This year is considered a more profitable year.True or false?

NetIncome = Sales − CostofGoodsSold − FixedCosts − DepreciationExpense − InterestExpense −…

Answered: 5- DUSKY has annual sales of $40…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 13P

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Question

5- DUSKY has annual sales of $40 million with the following costs:
Cost of goods sold $12 million, Fixed costs $16 million, Depreciation
expense $300,000, Interest expense $200,000, tax rate 30%, dividend
payout rate 20%, 1 million shares of common stock. What is the EPS,
earnings per share? State as a number.
6- DUSKY has annual sales of $40 million with the following costs:
Cost of goods sold $12 million, Fixed costs $16 million, Depreciation
expense $300,000, Interest expense $200,000, tax rate 30%, dividend
payout rate 20%, 1 million shares of common stock. Last year their net
profit margin was 28%. This year is considered a more profitable year.
True or false?

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