Paulson, Inc. reported net income of $60,000 during 2017. Throughout 2017, 20,000 shares of common stock and 5,000 shares of preferred stock were outstanding. The preferred stock has no dividend preference. Paulson reported earnings only for continuing operations items. How much is earnings per share for 2017?

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Earnings per share (EPS) is calculated by dividing net income by the number of common shares outstanding. Since the preferred stock has no dividend preference, all $60,000 of net income is attributable to common shareholders. Thus, EPS = $60,000 / 20,000 shares = $3.00.