Concave Systems presently has earnings before interest and taxes of $3,000,000. Its interest expenses are $500,000 a year, and it pays $600,000 in annual dividends to its shareholders. Concave has 300,000 common shares outstanding, and its tax rate is 40 percent. Its annual capital expenditures are $900,000. Concave's present price-earnings ratio is 12.
a. Calculate the company's earnings per share.
b. Calculate the company's dividend payout ratio.
c. Calculate the company's dividend yield.