Botanical gardens nursery has 7,500 shares of stock outstanding at a market price of $18 a share. the earnings per share are $1.23. the firm has total assets of $384,000 and total liabilities of $146,000. today, the firm is paying a quarterly cash dividend of $.22 a share. what will be the earnings per share after the dividend is paid if the tax rate on dividends is 15 percent?

a. $1.01
b. $1.04
c.$1.23
d. $1.17
e. $1.20

earning per share will not change as dividend is not deductible and will not affect the earning. Generally  dividend are liable to the recipient.

Explanation:

Given data:

shares of stock is 7500

market price of share is $18

earning is $1.23

total assets is 384,000

total liabilities is $146000

cash dividend is $.22 per share

earning per share will not change as dividend is not deductible and will not affect the earning. Generally  dividend are liable to the recipient.

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough