Dover River Company has current operating profit of $290,000 before taxes. Interest expense is $15,000, dividends paid on preferred shares were $24,500, and common dividends paid of $36,000. The company paid taxes of $70,500. The company has 30,000 outstanding common shares.

a.Calculate the EPS and common dividends per share.(Round the final answers to 2 decimal places.)

Earnings per share$Common dividends per share$

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

Payout ratio%

c.Determine the increase in retained earnings for the year.

Increase in retained earnings$

d.If the share price is $31.80, calculate the price-earnings (P/E) ratio.(Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Price-earning ratiotimes