Dover River Company has current operating profit of $310,000 before taxes. Interest expense is $30,000, dividends paid on preferred shares were $19,000, and common dividends paid of $42,000. The company paid taxes of $111,000. The company has 20,000 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 $36.00, calculate the price-earnings (P/E) ratio. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Price-earning ratio