Compute the firm earnings per share

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Question: The Med Tech Company recently reported net profits after taxes of $15.8 million. It has 2.5 million shares of common stock outstanding and pays preferred dividends of $1 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?

Reference no: EM131624561

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