Accounting

David’s Magic Stores has an operating profit of $210,000. Interest expense for the year was $30,000; preferred dividends paid were $24,700; and common dividends paid were $36,000. The tax was $59,300. David’s Magic Stores has 16,000 shares of common stock outstanding.

 

a. Calculate the earnings per share and the common dividends per share for David’s Magic Stores.(Round your answers to 2 decimal places.)

 

Earnings per share $
Common dividends per share $

 

b. What is the payout ratio? (Round your answer to 1 decimal place.)

 

Payout ratio %

 

c. What was the increase in retained earnings for the year?
Increase in retained earnings $

 

d. If David’s share price is $90.00 what is its price-earnings ratio (P/E)?

 

Price earning ratio x

 

Do You Need A Similar Assignment?

Place an order with us. Our skilled and experienced writers will deliver a custom paper which is not plagiarized within the deadline which you will specify.

Note; 6 Hours urgent orders deliver also available.

If you need more clarifications contact our support staff via the live chat for immediate response.

 

Type of paper Academic level Subject area
Number of pages Paper urgency Cost per page:
 Total: