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Dover River Company has current operating profit of $380,000 before taxes. Interest expense is $26,000, dividends paid on preferred shares were $40,800, and common dividends
Dover River Company has current operating profit of $380,000 before taxes. Interest expense is $26,000, dividends paid on preferred shares were $40,800, and common dividends paid of $51,000. The company paid taxes of $100,200. 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.) 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 $35.50, 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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