Question

Pettijohn Inc. The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets 2016 $ 1,554.0 9,660.0 13,440.0 $24,654.0 17,346.0 $42,000.0 Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $ 7,980.0 5,880.0 4,620.0 $18,480.0 10.920.0 $29,400.0 3,360.0 9.240.0 $12,600.0 $42,000.0 Income Statement (Millions of S) Net sales Domain.comcontentediation 2016 $58,800.0

Answer 1

Dividend per share = common dividends paid / shares outstanding = $509.83 million/ 175 million shares = $2.91.
option a is correct.