David's Magic Stores has an operating profit of $210,000. Interest expense for the year was $30,000; preferred

Question:

David's Magic Stores has an operating profit of $210,000. Interest expense for the year was $30,000; preferred dividends paid were $24, 700; and common dividends paid were $36,000. The tax was $59,300. David's Magic Stores has 16,000 shares of common stock outstanding.
a. Calculate the EPS and the common dividends per share for David's Magic Stores.
b. What is the payout ratio?
c. What was the increase in retained earnings for the year?
d. If David's share price is $90.00 what is its price-earnings ratio (P/E)?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...

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