Calculation of EPS and retained earnings Everdeen Mining, Inc., ended 2019 with net profits before taxes of $447,000. The company is subject to a 21% tax rate and must pay $64,100 in preferred stock dividends before distributing any earnings on the 168,000 shares ofcommon stock currently outstanding.a. Calculate Everdeen's 2019 earnings per share (EPS).b. If the firm paid common stock dividends of $0.76 per share, how many dollars would go to retained earnings?a. The firm's EPS is $(Round to the nearest cent.)C

Profit before tax = $477,000Tax = 21%Preference dividends = $64,100Shares outstanding =…

Answered: common stock currently outstanding. a.…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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common stock currently outstanding. a. Calculate Everdeen's 2019 earnings per share (EPS). b. If the firm paid common stock dividends of $0.76 per share, how many dollars would go to retained earnings? a. The firm's EPS is $ (Round to the nearest cent.)