declining PR ratio.

declining PR ratio. this suggest accountants should be concerned right

Earnings before interest and taxes                   $35 million

Interest expense                                           $5 million

Preferred stock dividends                               $4 million

Common stock dividend payout ratio                 30%

Common shares outstanding                           $2 million

Effective corporate income tax rate                   40%

expected common stock dividend per share

common stock will trade at the price/earnings ratio of 8, market price per share.