Harris Corporation had net income of $230,000 and paid dividends of $50,000 to common stockholders and $20,000 to preferred stockholders in 2010. Harris Corporation's common stockholders' equity at the beginning and end of 2010 was $870,000 and $1,130,000, respectively. There are 100,000 weighted-average shares of common stock outstanding.
Harris Corporation's earnings per share for 2010 was

Question

Quizplus · Accepted Answer

Earnings available to common stockholders = net income - preferred stock dividends 
Earnings available to common stockholders = $230,000 - $20,000 = $210,000 
Weighted average number of common shares outstanding = 100,000 
Earnings per share = earnings available to common stockholders / weighted average number of common shares outstanding 
Earnings per share = $210,000 / 100,000 = $2.10

Harris Corporation Had Net Income of $230,000 and Paid Dividends