Q1. Alpha Corporation reported the following financial details for thefinancial year 2021. Revenue is $250 million. EBITDA margin is 45%, EBITmargin is 25%. D&A is $10 million. Interest expense is $5 million. Interest &dividend income is $15 million. The firm sold an asset that has a book valueof $33 million, for $30 million. The tax rate applicable for the firm is 20%. Thebasic number of shares were 5 million, and diluted number of shares were5.25 million.a) Show the required workings to determine the basic EPS and diluted EPSfor 2021.b) The Board of Directors of Alpha Corporation decided to declare 40% ofnet income as dividend for the financial year 2021. An investor holds 350shares of Alpha Corporation. Determine the dividend income received by theinvestor. How much funds will be added to the retained earnings account for2021.

The earnings per share or the EPS are of two types that is the basic EPS and the diluted EPS. This…

Alpha Corporation reported the following financial details for t ncial year 2021. Revenue is $250 million. EBITDA margin is 45% gin is 25%. D&A is $10 million. Interest expense is $5 million. In dend income is $15 million. The firm sold an asset that has a bo 33 million, for $30 million. The tax rate applicable for the firm is ic number of shares were 5 million, and diluted number of share 5 million. how the required workings to determine the basic EPS and dilu

Alpha Corporation reported the following financial details for t ncial year 2021. Revenue is $250 million. EBITDA margin is 45% gin is 25%. D&A is $10 million. Interest expense is $5 million. In dend income is $15 million. The firm sold an asset that has a bo 33 million, for $30 million. The tax rate applicable for the firm is ic number of shares were 5 million, and diluted number of share 5 million. how the required workings to determine the basic EPS and dilu

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 5P

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