1. Dimeback, Inc., is obligated to pay its creditors $8,000 during the year. Required: (a) What is the market value of the shareholders' equity if assets have a market value of $9,200? (b) What if assets equal $6,600?
2. Papa Roach Exterminators, Inc., has sales of $654,000, costs of $305,000, depreciation expense of $50,000, interest expense of $28,000, and a tax rate of 40 percent. The firm paid out $107,000 in cash dividends, and has 20,000 shares of common stock outstanding. (a) What is the earnings per share, or EPS, figure? (b) What is the dividends per share figure?