(net income of $35 million less dividend payments of $15 million).įor further help on Glo-Bus Quiz 2, please email me. The company would have EPS of $3.50 for Year 8 and also its retained earnings for Year 8 would be $20 million However, retained earnings is not $10 million. The company would have Year 8 EPS of $3.50 and Year 9 retained earnings of $10 million. The company’s earnings per share would equal $2.00 (net income of $35 million less dividend payments of $15 million = $20 million divided by 10 million shares).ĮPS is calculated before dividends are paid out. Incorrect as annual interests costs are taken into account for the net profit calculation. GLO-BUS Quiz 1 4.5 (2 reviews) The factors that affect a company's P/Q rating for UAV drones include Click the card to flip the assembly quality incentives paid to drone PAT members, the company's prior-year brand reputation, and the prior year worldwide average warranty claim rate on the company's drones. The company’s retained earnings for Year 8 would be $5 million (net income of $35 million less dividend payments of $15 million less $15 million in interest payments) and its Year 8 EPS would be $0.50. Incorrect as retained earnings is after the share and the interest costs are paid out.
The company’s retained earnings for Year 8 would be $35 million.
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