# Question

Oak Furniture Company’s most recent earnings were $300,000. From these earnings, it paid dividends on common equity totaling $175,000. There are 50,000 common shares outstanding. The ROE for Widget is 12 percent. Determine the following:

a. i) Earnings per share.

ii) Which can you calculate: leading or lagging EPS?

b. Dividends per share

c. Earnings retention ratio

d. Sustainable growth rate

a. i) Earnings per share.

ii) Which can you calculate: leading or lagging EPS?

b. Dividends per share

c. Earnings retention ratio

d. Sustainable growth rate

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