Dover River Company has current operating profit of $340,000 before taxes. Interest expense is $22,000, dividends paid on preferred shares were $27,600, and common dividends paid of $39,000. The company paid taxes of $89,400. 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 $26.80, calculate the price-earnings (P/E) ratio. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Price-earning ratio times