Question 3: ABC Inc. ended 2016 with a net profit before taxes of $860,000. The company is subject to a 30% tax rate and must pay $100,000 in preferred stock dividends before distributing any earnings on the 200.000 shares of common stocks currently outstanding. Calculate ABC Inc. 2016 Earnings per share. If the firm paid common stock dividends of $1.20 per share, how many dollars would go to retained earnings