Question

Griffin's Goat Farm, Inc., has sales of $669,000, costs of $331,000, depreciation expense of $75,000, interest expense of $47,500, and a tax rate of 22 percent.

Answer 1

Earning Per share is $6.09 per share

Dividend Per share is $1.65 per share

Step-by-step explanation:

Sales $669,000

Costs ($331,000)

Gross Income $338,000

Depreciation expense ($75,000)

Interest expense ($47,500)

Earning before tax $215,500

Tax 22 percent ($47,410)

Net Income 168,090

Number of outstanding shares = 27,600

Earning Per share = Net Income / Number of outstanding shares = $168,090 / 27,600 = $6.09 per share

Dividend Payment = $`45,500

Dividend Per share = Dividend Paid / number of outstanding shares = $45,500 / 27,600 = $1.65 pershare