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) =480,000(10.27) =350,400 Net income available to common shareholders = Net income - Preferred dividends =350,400120,000=230,400 EPS =230,400/19,000 =12.13 If BubbleTree pays out a dividend of $9.7 for each share of common stock, what is the addition to retained earnings? Intro BubbleTree Inc. had a taxable income of $480,000 last year. Its average tax rate is 27% and it paid out $120,000 in dividends to preferred stockholders. The company has 19,000 shares of common stock outstanding