Answer:
EBIT = $251,000
interest expense = $33,900
taxes = $68,100
net income = $251,000 - $33,900 - $68,100 = $149,000
preferred dividends = $30,100
total stocks outstanding = 25,700
common dividends = $44,700
a) EPS = (net income - preferred dividends) / outstanding common stocks = ($149,000 - $30,100) / 25,700 = $4.63 per share
commons dividends per share = common dividends / outstanding common stocks = $44,700 / 25,700 = $1.74
b) retained earnings increase = net income - preferred dividends - common dividends = $149,000 - $30,100 - $44,700 = $74,200
