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3. For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows:
Cost of goods sold............................... $1.2 million
Administrative expenses........................ $250,000
Marketing and selling expenses............... $175,000
Depreciation........................................ $500,000
Interest expense.................................. $200,000
Dividends paid..................................... $150,000
(TCO 1) Suppose that Sports Baseball has 30,000 shares of stock. What is the dividends per share figure?

(Points : 3)
5.0
8.75
5.25
8.50

I CUM UP WITH 5.25...PLEASE HELP

  • BUSN - ,

    Total dividends/Total shares outstanding

    150,000/30,000
    =5.0

  • BUSN - ,

    4. For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows:
    Cost of goods sold............................... $1.2 million
    Administrative expenses........................ $250,000
    Marketing and selling expenses............... $175,000
    Depreciation........................................ $500,000
    Interest expense.................................. $200,000
    Dividends paid..................................... $150,000

    (TCO 1) Assuming a tax rate of 30%, the percentage of dividends per net income is approximately ______ and operating cash flow is _________ than net income.
    Hint: You need to calculate the net income and divide dividends by the net income.

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