Intro Bubble Tree Inc. had a taxable income of $380,000 last year. Its average tax rate is 27% and it paid out $120,000 in dividends to preferred stockholders. The company has 16,000 shares of common stock outstanding. Part 1 Attempt 1/10 for 10 pts. What were BubbleTree's earnings per share of common stock (EPS)? Correct EPS = Net income available to common shareholders / Number of shares outstanding Net income = Taxable income - Taxes - Taxable income * (1-tax rate) = 380,000 + (1-0.27) = 277,400 Net income available to common shareholders = Net income - Preferred dividends = 277,400 - 120.000 = 157,400 EPS = 157,400 16.000 = 9.84 Part 2 Attempt 10/10 for 10 pts. If BubbleTree pays out a dividend of $7.87 for each share of common stock, what are retained earnings? Previous answers: 151480, 151: 277400: 1,5,1.480: 5.82 5.82; 249100: 47000; 157400 Sub