West, Inc. has a net income of $500,000 for 2010, and there are 200,000 weighted-average shares of common stock outstanding. Dividends declared and paid during the year amounted to $80,000 on the preferred stock and $120,000 on the common stock. The earnings per share for 2010 is

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Net income = $500,000
Dividends paid on common stock = $120,000
Weighted-average shares of common stock = 200,000
Earnings Available for Common Stockholders = Net income - Preferred Dividends = $500,000 - $80,000 = $420,000
Earnings Per Share = Earnings Available for Common Stockholders / Weighted-average shares of common stock = $420,000 / 200,000 = $2.10 per share.

West, Inc Has a Net Income of $500,000 for 2010, and and There