Elite trailer parks has an operating profit of $257,000. interest expense for the year was $36,500; preferred dividends paid were $30,500; and common dividends paid were $38,300. the tax was $63,800. the firm has 20,100 shares of common stock outstanding. a. calculate the earnings per share and the common dividends per share for elite trailer parks.

EPS 1.30

Dividends per Share: 1.91

Explanation:

EBIT (earning before interest and taxes) 257,000

interest expense: 36,500

tax expense:         63,800    total            (100,300)

                             Net income                    56,700

Earnings per share:

(net income - preferred dividends) / common stock outstanding

(56,700 - 30,500) / 20,100 = 1,303482 = 1.30

Dividend per share:

common stock dividends / common stock outstanding

38,300 / 20,100 = 1,90547 = 1.91