If a company earns net income of $48 million in Year 8, has 20 million shares of common stock outstanding, pays a dividend of $1.00 per share, and has annual interest costs of $10 million, then

A the company's retained earnings for Year 8 would be $18 million (net income of $48 million less dividend payments of $20 million less interest costs of $10 million) and its earnings per share would be $0.90 ($18 million in retained earnings divided by 20 million shares of common stock).

B the company's EPS for Year 8 would be $2.40 and its retained earnings for Year 8 would be $28 million (net income of $48 million less dividend payments of $20 million); at the end of Year 8, the $28 million addition to retained earnings would cause shareholders' equity investment to increase by $28 million.

C the company's retained earnings for Year 8 would be $38 million (net income of $48 million less interest payments of $10 million) and its earnings per share in Year 8 would be $1.90 ($38 million divided by 20 million shares of common stock).

D the company's retained earnings for the year would be $18 million (net income of $48 million less dividend payments of $20 million less interest costs of $10 million) and its earnings per share would be $2.40.

E the company's retained earnings for the year would be $38 million (net income of $48 million less $10 million in interest payments) and the company's earnings per share would be $2.40.