1. The ABC Corporation had $500 million in Earnings to Common Shareholders and an EPS of $5. The payout ratio is 24%. Calculate the Dividends per share.
2. Swank Clothiers earned $640 million last year (earnings to common shareholders) and had a 30% payout ratio.
a. Calculate the total dividend payout.
b. Calculate the amount remaining as retained earnings.
3. You are given the following:
Net income to common shareholders = $390 million
Number of common shares outstanding = 243,750,000
Payout ratio = 50%
Current Price Per Share = $55
a. Calculate the EPS
b. Calculate dividends per share
c. Calculate the dividend yield
d. If the dividend yield for similar firms is 2.5%, what would you expect from investors?
4. You hold 1,500 shares in the XYZ Corporation. The 2016 year-end price per share was $125.
Last week, the Corporation announces a 2-1 stock split.
a. Calculate the total value of your shares at year-end 2016
b. Calculate the total value of your shares the day following the stock split (show your work).
5. Suppose the MMM Company has a stock price of $240 and has decided on a 3-1 stock split.
a. Calculate the new price per share.
b. Without using numbers, what do you think the EPS will reflect after the stock split?