Question 1 (6 points)
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Based on the information given below on Harmony Incorporated calculate the
following:
1) Net Income; 2) Change to Retained Earnings; 3) EPS; 4) Dividends Per Share: 5)
Dividend Yield
EBIT
5,000,000
Interest expense
150,000
Tax
40%
Preferred shares outstanding&div 200,000 ($8 each)
Common shares outstanding
2,000,000
Dividend Payout ratio
50%
Current stock price
$15