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Calculate the earnings and dividends per share


Response to the following questions:

1. Goodstuff Corporation has total equity of $500 million and 100 million shares outstanding. Its ROE is 15%. Calculate the company's EPS.

2. Goodstuff Corporation has total equity of $500 million and 100 million shares outstanding. Its ROE is 15%. The dividend payout ratio is 33.3%. Calculate the company's dividends per share (round to the nearest cent).

 

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Financial Accounting: Calculate the earnings and dividends per share
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