A Company has 12,000,000 in sales. COGS are 40% of sales. Operating costs are $1,200,000plus depreciation expense of $80,000 and interest expense $80,000. Tax rate is 40%. They have 1,000,000 shares of stock outstanding.

1. what is their net income?

2. If they retained 80% and paid 20% in dividends, what is their dividend payout?

3. IF they had EPS of $2.40 last year, how does this year's EPS compare to last year's?