David's Magic Stores has an operating profit of $200,000. Interest expense for the year was$29,000; preferred dividends paid were $31,500; and common dividends paid were $50,000. The tax was $52,600. David's Magic Stores has 20,000 shares of common stock outstanding.

a.Calculate the EPS and the common dividends per share for David's Magic Stores.(Round the final answers to 2 decimal places.)

EPS$Common dividends per share$

b.What is the payout ratio?(Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Payout ratio%

c.What was the increase in retained earnings for the year?

Increase in retained earnings$

d.If David's share price is $86.00 what is its price-earnings ratio (P/E)?(Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Price earning ratiotimes

Phelps Labs has assets of $397,000, current liabilities of $87,000, and long-term liabilities of $72,000. There is $36,500 in preferred stock outstanding; 20,000 shares of common stock have been issued.

a.Compute book value (net worth) per share.(Round the final answer to 2 decimal places.)

Book value per share$

b.If there is $25,900 in earnings available to common shareholders and Phelp's stock has a P/E ratio of 16 times EPS, what is the current price of the stock?(Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Current price$

c.What is the ratio of market value per share to book value per share?(Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Ratio