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Dover River Company has current operating profit of $360,000 before taxes. Interest expense is $24,000, dividends paid on preferred shares were $34,200, and common dividends
Dover River Company has current operating profit of $360,000 before taxes. Interest expense is $24,000, dividends paid on preferred shares were $34,200, and common dividends paid of $45,000. The company paid taxes of $94,800. 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 $34.50, calculate the price-earnings (P/E) ratio. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Price-earning ratio times
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