Elite Trailer Parks has an operating profit of $307,000. Interest expense for the year was $32,000; preferred dividends paid were $31,600; and common dividends paid were $41,800. The tax was $65,100. The firm has 21,400 shares of common stock outstanding. Required:a. Calculate the earnings per share and the common dividends per share for Elite Trailer Parks. b. Wnat was the Increase in retained eings for the year?

a. $8.33

$1.95

b.$136,500

Explanation:

The computation of earnings per share and the common dividends per share is shown below:-

a. Earning per share = Earnings Available to Common Stockholders ÷ Number of Shares of Common Stock Outstanding

= $178,300 ÷ 21,400

= $8.33

Dividends per Share = $41,800 ÷ 21,400

= $1.95

b. Increase in retained earnings = Operating Profit (EBIT) - Interest expense - Taxes - Preferred dividends - Common dividends

= $307,000 - $32,000 - $65,100 + $31,600 + $41,800

= $136,500

We simply applied the above formulas

answer; vertical marketing system;

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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