A company has 12000000 in sales cogs are 40 of sales


A Company has 12,000,000 in sales. COGS are 40% of sales. Operating costs are $1,200,000plus depreciation expense of $80,000 and interest expense $80,000. Tax rate is 40%. They have 1,000,000 shares of stock outstanding.

1. What is their net income?

2. If they retained 80% and paid 20% in dividends, what is their dividend payout?

3. IF they had EPS of $2.40 last year, how does this year's EPS compare to last year's?

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Financial Management: A company has 12000000 in sales cogs are 40 of sales
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