The Longmire Company recently reported net profits after taxes of $35.8 million. It has 3.5 million shares

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The Longmire Company recently reported net profits after taxes of $35.8 million. It has 3.5 million shares of common stock outstanding and pays preferred dividends of $2 million per year.
a. Compute the firm’s earnings per share (EPS).
b. Assuming that the stock currently trades at $60 per share, determine what the firm’s dividend yield would be if it paid $2 per share to common stockholders.
c. What would the firm’s dividend payout ratio be if it paid $2 per share in dividends?

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Fundamentals Of Investing

ISBN: 9780135175217

14th Edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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