Smith Motors Inc. manufactures, distributes, and services automotive p

Smith Motors Inc. manufactures, distributes, and services automotive parts and engines worldwide. Smith’s income statement for the year just ending is shown below. What was Smith’s dividend per share in Year 1?

Smith Motors Inc.
Income Statement
Year 1 ($000,000’s)
Revenue $19,115
COGS 14,255
SG&A 2,245
Dep. Exp. 344
EBIT 2,271
Int. Exp. 47
Pre-Tax Income 2,223
Income Tax 767
Net Income 1,456

Shares Outstanding (millions) 175
Total Common Dividends $290.50

A) $0.74
B) $0.95
C) $1.28
D) $1.66
E) $2.03

ANSWER

D