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.)

Question

Theodore Craig

Business

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)

Know the Answer?

Krista Fox · Answer 1

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