If a company reports operating profit of $70 million, earns net income of $50 million in Year 8, has 20 million shares of common stock outstanding, pays a dividend of $1.50 per share, and has annual interest costs of $15 million--all in Year 8, then the company's credit rating would be no less than an A because operating profit is seven times higher than annual interest costs. the company's total earnings for Year 8 would be $10 million (net income of $50 million less interest costs of $10 million less dividend payments of $30 million = $10 million) the company's EPS for Year 8 would be $2.50 and its retained earnings for Year 8 would be $20 million (net income of $50 million less dividend payments of $30 million) the company's EPS for Year 8 would be $1.50 (operating profit of $70 million less interest costs of $10 million, less dividend payments of $30 million = $30 million divided by 20 million shares). the company's EPS for Year 8 would be $5.50 and its retained earnings for Year 8 would be $10 million (net income of $50 million less interest costs of $10 million less dividend payments of $30 million)