Giant Redwood Toothpick Products LLC will end $2014$ with a net profit before tax of $$200,000.$ President Trump just lowered the corporate marginal tax rate from $40\%$ to $15\%$ to fulfill a campaign promise. The company is therefore now only subject to a $15\%$ federal plus state income tax rate and has $100,000$ shares of cumulative preferred stock that normally pay $20$ cents per share per year in preferred stock dividends. Giant Redwood Toothpick Products LLC has always paid preferred stock dividends but has flexibility to not pay when times are bad. There are $100,000$ shares of common stock currently outstanding. Giant Redwood Toothpick Products plans on paying dividends to its common stock shareholders in $2014.$

a$.$ Calculate Giant Redwood Toothpick Products LLC$$s $2014$ earnings per share.

b$.$ If the firm paid common stock dividends of $$0\mathrm{.}50$ per share per year, how many dollars will go to retained earnings?

c$.$ The toothpick market just collapsed. What will happen to common stock dividends in $2013$ if Giant Redwood Toothpick Products LLC suddenly elects to not pay preferred shareholders any dividends in $2013?$ If they did not pay dividends on preferred stock, what do you think would happen to dividends on common stock, and the prices of shares of preferred and common stock?