Davids Magic Stores has an operating profit of $260,000. Interest expense for the year was $31,000; preferred dividends paid were $34,500; and common dividends paid were $36,000. The tax was $53,800. Davids Magic Stores has 16,000 shares of common stock outstanding.

a. Calculate the EPS and the common dividends per share for Davids 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 Davids share price is $98.00 what is its price-earnings ratio (P/E)? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Price earning ratio------------- times