3. We have the following information on Costco (COST) on October 20th, 2020: the previous close price $375.56, market cap $166.92 billion, P/E ratio 41.94, and dividend yield of 0.75%. How many shares were outstanding? How much earnings was distributed in total? How much earnings was retained in the corporation?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 88PSA: Ratio Analysis Consider the following information taken from the stockholders equity section: How do...
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3.
We have the following information on Costco (COST) on October 20th,
2020: the previous close price $375.56, market cap $166.92 billion, P/E ratio 41.94,
and dividend yield of 0.75%. How many shares were outstanding? How much earnings
was distributed in total? How much earnings was retained in the corporation?
Transcribed Image Text:3. We have the following information on Costco (COST) on October 20th, 2020: the previous close price $375.56, market cap $166.92 billion, P/E ratio 41.94, and dividend yield of 0.75%. How many shares were outstanding? How much earnings was distributed in total? How much earnings was retained in the corporation?
Expert Solution
Step 1

Market Cap can be calculated as = Number of Shares outstanding x Price of Stock

P/E ratio = Market Price / Earning per share

Dividend Yield = (Dividend per share / Market price per share) x 100

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