What is Company Xs ROE

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Question - Company X has 600 shares of common stock, booked as stock value of $24,000, and paid in capital of $420,000. In addition, the firm has 1800 shares of preferred stock, cumulative, with a par value of $75 and a 6% annual dividend. Company X carries long term debt of $421,000 at 5%. Company X had earnings this year of $150,000 and is taxed at 21%.

Required -

(1) What is Company X's ROE? (show your calculation)

(2) What is Company X's EPS? (show your calculation)

(3) Complete the following table with values for each.

EBIT

Interest

EBT

Tax

EAT

Preferred Dividend

EAC

Reference no: EM132767857

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