In 2014, Pirex Ltd. earned $6 million in profit for the year. The company had 2.3 million

Question:

In 2014, Pirex Ltd. earned $6 million in profit for the year. The company had 2.3 million shares outstanding and paid $3.0 million in dividends. The market price for each share was $15.00.

Calculate the following:

a) The company’s EPS

b) The company’s dividends per share

c) The company’s dividend yield

d) The company’s P/E ratio

e) The payout ratio

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...