Grandview Company Reported Net Earnings of $425,000 for 2014 $\quad$

Multiple Choice

Grandview Company reported net earnings of $425,000 for 2014.Their retained earnings were $1,125,000 on January 1, 2014, and $1,425,000 on December 31, 2014.Grandview had 50,000 common shares outstanding throughout the year with a recorded value of $200,000.What were their earnings per share (EPS) and dividends per share (DPS) for 2014?
$\quad$ $\underline{\text { EPS }} \quad \underline{\text { DPS }}$
A. $\$ 2.125 \quad \$ 0$
B. $\$ 2.125 \quad \$ 2.50$
C. $\$ 8.50 \quad \$ 0$
D. $\$ 8.50 \quad \$ 2.50$

A) Option A
B) Option B
C) Option C
D) Option D
EPS = $425,000/50,000 = $8.50, Dividends paid = Net income minus the change in retained earnings =