Ask Question
14 January, 15:28

Elite Trailer Parks has an operating profit of $225,000. Interest expense for the year was $35,200; preferred dividends paid were $30,700; and common dividends paid were $36,600. The tax was $64,600. 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. (Round your answers to 2 decimal places.)

+1
Answers (1)
  1. 14 January, 15:29
    0
    Earnings per share (EPS) = $4.70 per share

    Dividend per share (DPS) = $1.82 per share

    Explanation:

    Elite Trailer Parks

    Income statement

    $

    Operating Profit 225,000.00

    less interest expense (35,200.00)

    Profit before Tax 189,800.00

    Less Tax 64,600.00)

    Profit after tax 125,200.00

    Preferred dividends (30,700.00)

    Earnings to common stock 94,500.00

    Dividend to Common stock 36,600.00

    Earnings per share (EPS)

    Earnings per share (EPS) = Earnings available to ordinary shareholders / unit of shares

    =$94,500.00/20,100 units

    = $4.70 per share

    Dividend per share (DPS)

    = Total dividend to common stock / units of shares

    =36,600.00 / 20,100 units

    =$1.82 per share

    Earnings per share (EPS) = $4.70 per share

    Dividend per share (DPS) = $1.82 per share
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Elite Trailer Parks has an operating profit of $225,000. Interest expense for the year was $35,200; preferred dividends paid were $30,700; ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers