Calculation of EPS and retained earnings Everdeen Mining, Inc., ended the year with net profits before...

Transcribed Image Text:

Calculation of EPS and retained earnings Everdeen Mining, Inc., ended the year with net profits before taxes of $443,000. The company is subject to a 21% tax rate and must pay $65,300 in preferred stock dividends before distributing any earnings on the 166,000 shares of common stock currently outstanding. a. Calculate Everdeen's earnings per share (EPS). b. If the firm paid common stock dividends of S0.77 per share, how many dollars would go to retained earnings? a. The firm's EPS is S. (Round to the nearest cent.) Calculation of EPS and retained earnings Everdeen Mining, Inc., ended the year with net profits before taxes of $443,000. The company is subject to a 21% tax rate and must pay $65,300 in preferred stock dividends before distributing any earnings on the 166,000 shares of common stock currently outstanding. a. Calculate Everdeen's earnings per share (EPS). b. If the firm paid common stock dividends of S0.77 per share, how many dollars would go to retained earnings? a. The firm's EPS is S. (Round to the nearest cent.)