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10 December, 06:34

Delaware Trust has 450 shares of common stock outstanding at a market price per share of $27. Currently, the firm has excess cash of $400, total assets of $28,900, and net income of $1,320. The firm has decided to pay out all of its excess cash as a cash dividend. What will the earnings per share be after this dividend is paid? A. $2.69 B. $2.86 C. $2.93 D. $3.07 E. $3.24

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  1. 10 December, 09:48
    0
    Earnings per share is $2.93

    Step-by-step explanation:

    Given data

    shares = 450

    assets = $28,900

    net income = $1,320

    to find out

    earnings per share

    solution

    Earnings per share is directly calculate by net income / total share

    here we know net income and that share i. e. 450

    so

    Earnings per share = net income / total share

    Earnings per share = 1,320 / 450

    Earnings per share = $2.93

    so option C is right i. e. $2.93
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