During 2019, Nanticoke industries had sales $42,800. Cost of goods sold, administration and selling, and depreciation expenses were $16,050, $4,050, and $2,200. In addition, the company had an interest expense of $8,000 and a tax rate of 35%.

1. What is Nanticokes net income for 2019? Also, compute an addition to retained earnings. The dividend paid is $1,625. (2 marks)
2. What is EPS? Assume that shares outstanding are 5,000. (1 mark)
3. Assume the market price of Stock = $16.98 per share and. What is the price-earnings ratio? Also, interpret the ratio. (1 mark)