B&O Railroad Inc transports industrial products and supplies throughou

B&O Railroad Inc transports industrial products and supplies throughout the North Eastern United States. Selected financial information for B&O is provided in the table below. B&O is considering a stock dividend of 5%.

What will earnings-per-share be after the dividend?

B&O Railroad Inc
Selected Financial Information
Stock Price $68
EPS $6.00
Dividends per share $1.24
Payout Ratio 20.66%
Shares Outstanding 150M

A) $3.66
B) $4.05
C) $4.61
D) $5.71
E) $5.91

ANSWER

D