Parsons Electronics Inc. ended 2017 with a net profit before taxes of €560,000. The company is subject to a 20% tax rate and must pay €50,000 in preferred stock dividends. The balance sheet shows Parsons has an ordinary share capital of €25,000 in 25 preference shares.

a. Calculate Parsons’ 2017 earnings per share (EPS).

b. If the firm paid common stock dividends of €1.20 per share, how many euros would go to retained earnings?