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    Calculate EPS and Cash Dividend.

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    Statement of retained earnings: Hayes Inc., began 2003 with retained earnings balance of 878,000. During 2003, the firm earned 593, 000 after taxes. From this amount, preferred stockholders were paid 74,000 in dividends. At year year-end 2003, the firm's retained earnings totaled 1, 119,000.00. The firm had 129,000.00 shares of common stock outstanding during 2003.

    A. Calculate the firm's 2003 earnings per share (EPS).

    B. How large a per share cash dividend did the firm pay on common stock during 2003?

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    Solution Preview

    A. Calculate the firm's 2003 earnings per share (EPS).
    = subtract preferred dividend from earnings after taxes and divide number of shares outstanding

    593,000 - 74000 = ...

    Solution Summary

    The solution computes EPS and cash dividend from given Statement of Retained Earnings.