Shares of common stock outstanding-dividend payout ratio

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Prince Systems(PS) has 500,000 shares of common stock outstanding and its EPS is $7. The firm has a dividend payout ratio of 35% and the current market price of its stock is $75. a) What are PS’s (1) total earnings (2) EPS (3) total cash dividends (4) cash dividends per share (5) total market value (6) P/E ratio b) Treena owns 750 shares of PS stock. What are Treena’s (1) total earnings (2) total market value of her stock? c) PS declares a 23% stock dividend. (Assume the dividend payout ratio remains the same). What are PS’s new (1) total earnings (2) EPS (3) total cash dividends (4) cash dividends per share (5) total market value (6) P/E ratio d) After the stock dividend, what are Treena’s (1) total earnings ? (2) total market value of her stock?

Reference no: EM131057682

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