A firm had sales of $5,000,000 and incurred a cost of goods sold equal to $4,500,000. The

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A firm had sales of $5,000,000 and incurred a cost of goods sold equal to $4,500,000. The firm’s operating expenses were $130,000, and its increases in retained earnings was $40,000 for the year. There are currently 100,000 common-stock shares outstanding, and the firm pays a $1.485 dividend per share. The firm has $1,000,000 in interest-bearing debt on which it pays 8% interest.