The following financial information relates to Morgan & Welish Associates
| Year | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|
| Earnings attributed to Ordinary Shareholders | $100 | $125 | $102 | $115 |
| Number of Ordinary Shares | 1000 | 1050 | 1050 | 950 |
| Price per share | 110 cents | 150 cents | 145 cents | 130 cents |
| Dividend per share | 5 cents | 7 cents | 8 cents | 8 cents |
REQUIRED:
Calculate Morgan & Welish’
i) earning per share
II) dividend yield
iii) price/earning ratio
Ph Co. has an 8% debt with a book value of 8 M and a common stock of 8.5 M with outstanding shares of 370,000. The expected level of EBIT after the expansion is 3.5 M. The income tax rate is 25%. The firm is considering a 12 M expansion program using one of the following:
Plan 1 – Incur additional debt at 10% interest;
Plan 2 – Sell preferred shares with an 11.5% dividend yield; and
Plan 3 – Sell new common stock at 25 per share.
How much is the EPS for Plan 1?
