1. A firm has EBIT of $842,300.00. Assume that the firm will pay $210,170.00 in interest in the upcoming year. The firm has a corporate tax rate of 37.00%. The firm has 101,000.00 common shares outstanding.
If the firm pays a 20% dividend, what are the dividends per share?
2. Alex is buying a four-wheel drive, fully loaded Hummer. The cost of the car is $50,000 and he is putting down $10,000. What are his monthly payments if he finances the car over 5 years at 8%?