Question

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​

Answer 1

Answer:

$150000000

Explanation:

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).

Answer 2

Answer:

c

Explanation:

dont know anything njust a try