Calculation of EPS and retained earnings
Everdeen Mining?, Inc., ended 2015 with net profits before taxes of $427,000.
The company is subject to a 40% tax rate and must pay $65,500 in preferred stock dividends before distributing any earnings on the 172,000 shares of common stock currently outstanding.
a. Calculate? Everdeen's 2015 earnings per share? (EPS).
b. If the firm paid common stock dividends of $0.75 per? share, how many dollars would go to retained? earnings?