INTRO To College Finance Level 1

Dover River Company has current operating profit of $330,000 before taxes. Interest expense is $20,000, dividends paid on preferred shares were $31,000, and common dividends paid of $51,000. The company paid taxes of $84,000. The company has 30,000 outstanding common shares.

a.	Calculate the EPS and common dividends per share. (Round the final answers to 2 decimal places.)

Earnings per share	$ 6.50
Common dividends per share	$ 1.70

i have completed part a) but double check

b.	Calculate the payout ratio. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Payout ratio

%

c.	Determine the increase in retained earnings for the year.

Increase in retained earnings

$

d.	If the share price is $24.70, calculate the price-earnings (P/E) ratio. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Price-earning ratio