Financial information for KTM Corporation (www.KTM.com) follows:
Net income (in thousands) . . . . . . . . . . . . . . . . . . . . . . . . . € 20,818
Cash dividends declared (in thousands) . . . . . . . . . . . . . . € 0
Cash dividends declared per share . . . . . . . . . . . . . . . . . . . € 0.00
Number of shares outstanding (in thousands)* . . . . . . . . . 10,509
Equity applicable to shares (in thousands) . . . . . . . . . . . . €219,775
* Assume that for KTM the year- end number of shares outstanding approximates the weighted- average shares outstanding.

Required
1. Compute book value per share for KTM.
2. Compute earnings per share (EPS) for KTM.
3. Compare KTM’s dividends per share with its EPS. Is KTM paying out a large or small amount of its income as dividends? Explain.