Southland Industries has $60,000 of 5.2% ?(annual interest) bonds?outstanding, 1,800 shares of preferred stock paying an annual dividend of $3 per?share, and 4,000 shares of common stock outstanding. Assuming that the firm has a 40% tax?rate, compute earnings per share?(EPS) for the following levels of?EBIT:

a. $25,500

b. $29,600

c. 34,500

HINT: ( Round to two decimal places + what you see in the picture you must solve like that)

Transcribed Image Text:

EBIT Less: Interest Net profits before taxes Less: Taxes Net profit after taxes Less: Preferred dividends Earnings available to common shareholders EPS Tibini $ SA EBIT Less: Interest Net profits before taxes Less: Taxes Net profit after taxes Less: Preferred dividends Earnings available to common shareholders EPS Tibini $ SA

Answer rating: 100% (QA)

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