Answe: B) $1.00; $4.00
Working notes for the above answer is as under
First of all we will calculate devidend Yeild as follow
dividend yield
=Annual dividend per share x Price per share
=25 x 4%
=25*0.04
=1
We have been given in the sum that , The dividend payout ratio is 25%. so ot of 100% company pay 25% as dividend
So the earnings per share is calculated as follow
= $ 1 / 25%
=$ 4