Estimate the expected value

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Reference no: EM1360472

Total Assets: $12,500,000
Total Liabilities: $8,500,000
Common Shares Outstanding: 200,000
Preferred Shares Outstanding: 50,000
Common Stock Par Value: $1
Preferred Stock Par Value: $50
Common Stock Dividends: $200,000
Preferred Stock Dividends: $150,000
Earnings After Taxes: $500,000

What is the EPS?
What is the book value per share?

The XYZ Electric Company has analyzed sales projections for the coming year based on the projected weather for the summer. XYZ believes that revenue will be $22,000,000 if the summer is unseasonably cool, $30,000,000 if the summer is average, and $41,000,000 if the summer is unseasonably hot. Weather forecasters project that the probability of an unseasonably hot summer is 30% and an unseasonably cool summer is 25%. What is the expected value of XYZ's sales for the coming year?

 

Reference no: EM1360472

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