Thermo Dynamics had $450,000 of retained earnings on December 31, 2015. The company paid dividends of $25,000

Question:

Thermo Dynamics had $450,000 of retained earnings on December 31, 2015. The company paid dividends of $25,000 in 2015 and had retained earnings of $400,000 on December 31, 2014.
a. How much did Thermo earn during 2015?
b. What would EPS be if 20,000 shares of common stock are outstanding?
c. What is the payout ratio?
d. If Thermo's share price is $30.00 what is its price-earnings ratio (P/E)?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...

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