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)?