2015年上海商学院财务管理专业专升本招生%PreferenceShares$4，000，000

Payout Ratio for Ordinary Shares 60%

Ordinary Shares @ $2 each per accounts$1,000,000

Net Profit after Tax and Preference Dividend

=$2,000,000x(1-30%)–$4,000,000x10%

=$1,400,000– $400,000=$1,000,000

Payout= 60%x$1,000,000=$600,000

Dividends Per Ord Share=

Net Profit after Tax and Preference Dividend= $600,000=$1.20

Number of Ordinary Shares 500,000

( e ) Required: Calculate the EARNINGS PER SHARE.

Net Profit Before Tax $1,600,000

Tax Rate 30%

Payout Ratio for Ordinary Shares 60%

Ordinary Shares @ $2 each per accounts$1,000,000

Net Profit after Tax and Preference Dividend

=$2,000,000x(1-30%)–$4,000,000x10%

=$1,400,000– $400,000=$1,000,000

Payout= 60%x$1,000,000=$600,000

Dividends Per Ord Share=

Net Profit after Tax and Preference Dividend= $600,000=$1.20

Number of Ordinary Shares 500,000

( e ) Required: Calculate the EARNINGS PER SHARE.

Net Profit Before Tax $1,600,000

Tax Rate 30%

Payout Ratio for Ordinary Shares 60%

Ordinary Shares @ $2 each per accounts$1,000,000

Net Profit after Tax and Preference Dividend

=$2,000,000x(1-30%)–$4,000,000x10%

=$1,400,000– $400,000=$1,000,000

Payout= 60%x$1,000,000=$600,000

Dividends Per Ord Share=

Net Profit after Tax and Preference Dividend= $600,000=$1.20

Number of Ordinary Shares 500,000

( e ) Required: Calculate the EARNINGS PER SHARE.

Net Profit Before Tax $1,600,000

Tax Rate 30%

Payout Ratio for Ordinary Shares 60%

Ordinary Shares @ $2 each per accounts$1,000,000

Net Profit after Tax and Preference Dividend

=$2,000,000x(1-30%)–$4,000,000x10%

=$1,400,000– $400,000=$1,000,000

Payout= 60%x$1,000,000=$600,000

Dividends Per Ord Share=

Net Profit after Tax and Preference Dividend= $600,000=$1.20

Number of Ordinary Shares 500,000

( e ) Required: Calculate the EARNINGS PER SHARE.

Net Profit Before Tax $1,600,000

Tax Rate 30%