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What is the net income for firm and earnings per share

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Reference no: EM131059179

Fyre, Inc., has sales of $625,000, costs of $260,000, depreciation expense of $79,000, interest expense of $43,000, and a tax rate of 35 percent. What is the net income for this firm?

Income statement

Sales   $625,000

Less cost - 260,000

Less Depreciation - 79,000

Less interest expense. -43,000

$243,000

Less tax (243000*35%). -85,050

_________

Net income $157,950

Paid out. -$60,000

__________________________________

Addition to retained earnings $97,950

Suppose the firm had 40,000 shares of common stock outstanding. What is the earnings per share, or EPS, figure? What is the dividends per share figure?

Reference no: EM131059179

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