What is the firm eps given that it pays tax

Assignment Help Financial Accounting
Reference no: EM132539543

Question 1: Decillion Technologies has 60 million shares outstanding and pays interest of $75 million per year. Its EBIT is $500 million and it pays an annual preference dividend of $150 million. What is the firm's EPS, given that it pays tax at 30%? Group of answer choices

Option 1: None of the other answers is correct

Option 2: $4.58

Option 3: $3.33

Option 4: $2.50

Option 5: $4.96

Reference no: EM132539543

Questions Cloud

Which project has a shorter payback period : Which project has a shorter payback period? The truck can deliver an additional 150,000 bottles of water per year. The contribution margin per bottle
How might the changes impact your business : What are some of the changes we can expect related to the transportation industry in the future? How might these changes impact your business?
Outputs derived from a business policy : With one (1) example each, state and explain five (5) outputs derived from a business policy
What are principal differences between financial statements : What are the principal differences between the financial statements of the governmental unit's general fund and the financial statements of a business
What is the firm eps given that it pays tax : What is the firm's EPS, given that it pays tax at 30%? Decillion Technologies has 60 million shares outstanding and pays interest of $75 million per year.
What the deferred tax amount in the first year is equal to : For computing tax, it provides 15% depreciation under Written down-value (WDV) method. If tax rate is 30%, the deferred tax amount in the first year is equal to
Institutions and non-governmental organizations : Using examples, explain how goals, targets, annual objectives and long-term objectives will be different among corporate bodies, public sector institutions
Flexible work arrangements : Do you think only certain individuals are attracted to flexible work arrangements? Why or why not?
What is the total interest paid at the end of the first year : How much money will have in savings? What is total interest paid at end of the first year of the mortgage with $200,000 principal at 4.8% p.a over 20 years?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd