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1 April, 08:42

Botanical Gardens Nursery has 6,800 shares of stock outstanding at a market price of $21 a share. The earnings per share are $1.54. The firm has total assets of $315,000 and total liabilities of $186,000. Today, the firm is paying an annual cash dividend of $0.82 a share. Ignore taxes. What will the earnings per share be after the dividend is paid? a. $0.31b. $0.74c. $1.54d. $20.70e. $21.02

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  1. 1 April, 08:56
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    Earnings Per Share will be still $1.54.

    Explanation:

    According to the following formula, we get:

    Earnings per share = Earnings available/Number of shares

    Earnings Per Share does not change with payment of dividends. Hence, EPS will be still $1.54.
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