Elite Trailer Parks has an operating profit of $251,000. Interest expense for the year was $33,900; preferred dividends paid were $30,100; and common dividends paid were $44,700. The tax was $68,100. The firm has 25,700 shares of common stock outstanding. Required:
a. Calculate the earnings per share and the common dividends per share for Elite Trailer Parks. (Round your answers to 2 decimal places.)
b. What was the increase in retained earnings for the year?

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

answer; by looking at total product,marginal product,and changes in both after changes in inputs