Everdeen Mining, Inc., ended 2015 with the net profit before taxes of $436,000. The company is subject to 40% tax rate and must pay $64,000 in preferred stock dividends before distributing any earnings on 170,000 shares of common stock currently outstanding.
a. Compute Everdeen's 2015 earnings per share (EPS).
b. If the firm paid common stock dividends of $0.80 for each share, how many dollars would go to retained earnings?