Question: the income statement for travers & co is shown. The firm currently has 35 millions shares of common stock outstanding. However, an analyst has looked
the income statement for travers & co is shown. The firm currently has 35 millions shares of common stock outstanding. However, an analyst has looked at the firm's outsanding warrants and options to determine the likelihood of them being exercised. The analyst has determined that the firm's adjusted number of common shares after the expected dilution is 38.5 million
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INCOME STATEMENT (Milions of dollars) Total revenues 1,450 Operating costs excluding depreciation - Depreciation and amortization expense Operating income (EBIT) - Interest expense Taxable income - Taxes Net income - Preferred dividends 1,200 50 $ 200 $175 63 112 Net income available to common shareholders 3112 Common dividends Addition to retained earnings $71 Answer the following questions about Travers & Co.'s income statement. What is the firm's DPS for 2005? O $2.25 O $3.05 O $2.44 O $1.79 O $2.03 What is the basic EPS? O $3.45 O $3.20 O $4.09 O $4.43 O $3.08 What is the diluted EPS O $2.91 O $4.25 O $3.83 O $3.65 O $4.09 What is the firm's operating margin? O 14.98% 10.71% o 6.29% 13.79% o 8.51% What is the firm's net profit margin? o 6.29% o 8.51% O 11.74% O 15.53% o 7.72%
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