The Longmire Company recently reported net profits after taxes of $35.8 million. It has 3.5 million shares of common stock outstanding and pays preferred dividends of $2 million per year.

1. Compute the firm's earnings per share (EPS)
2. Assuming that the stock currently trades at $60 per share, determine what the firm's dividend yield would be if it paid $2 per share to common stockholders.
3. What would the firm's dividend payout ratio be if it paid $2 per share in dividends?