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

Question

Mathematics

Braxton

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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Answers (1)

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Bootsie · Answer 1

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