The value of equity is $150,000,000. The return on equity is 15%, the cost of capital is 18% and the company retains 60% of its earnings. Total number of outstanding shares is 1,000,000. Calculate the earnings per share (EPS) and dividend per share (DPS). A. $20.67 and $8.27 B. $35 and $12 C. $27 and $10.80 D. $22.50 and $9

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
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The value of equity is $150,000,000. The return on equity is 15%, the cost of capital is 18%
and the company retains 60% of its earnings. Total number of outstanding shares is
1,000,000. Calculate the earnings per share (EPS) and dividend per share (DPS).
A. $20.67 and $8.27
B. $35 and $12
C. $27 and $10.80
D. $22.50 and $9
Transcribed Image Text:The value of equity is $150,000,000. The return on equity is 15%, the cost of capital is 18% and the company retains 60% of its earnings. Total number of outstanding shares is 1,000,000. Calculate the earnings per share (EPS) and dividend per share (DPS). A. $20.67 and $8.27 B. $35 and $12 C. $27 and $10.80 D. $22.50 and $9
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