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23 August, 14:07

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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  1. 23 August, 18:00
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    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
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