10. (a) XYZ has assets of $1,800,000, current liabilities of $595,000, and long-term liabilities of $630,000. There is $165,000 in preferred stock outstanding; 20,000 shares of common stock have been issued.

Compute book value (net worth) per share.

If there is $45,000 in earnings available to common shareholders and Phelp's stock has a P/E ratio of 13 times EPS, what is the current price of the stock?

What is the ratio of market value per share to book value per share?

10 (b) River Company has current operating profit of $200,000 before taxes. Interest expense is $10,000, dividends paid on preferred shares were $18,750, and common dividends paid of $30,000. The company paid taxes of $61,250. The company has 20,000 outstanding common shares.

Calculate the EPS and common dividends per share.

Determine the increase in retained earnings for the year