A company had the following stockholders' equity information available at year-end.

- Issued 11,000 shares of $2.00 par value common stock for $12.00 per share.
- Issued 5,000 shares of $50 par value 6% preferred stock for $70 per share.
- Purchased 1,000 shares of previously issued common stock for $15.00 per share.
- Reported net income of $200,000.
- Declared and paid the preferred stock dividend.

Calculate the earnings per share for the current year.

Question

A company had the following stockholders' equity information available at year-end.
​
- Issued 11,000 shares of $2.00 par value common stock for $12.00 per share.
- Issued 5,000 shares of $50 par value 6% preferred stock for $70 per share.
- Purchased 1,000 shares of previously issued common stock for $15.00 per share.
- Reported net income of $200,000.
- Declared and paid the preferred stock dividend.
​
Calculate the earnings per share for the current year.

Quizplus · Accepted Answer

The Answer of A company had the following stockholders' equity information available at year-end.
​
- Issued 11,000 shares of $2.00 par value common stock for $12.00 per share.
- Issued 5,000 shares of $50 par value 6% preferred stock for $70 per share.
- Purchased 1,000 shares of previously issued common stock for $15.00 per share.
- Reported net income of $200,000.
- Declared and paid the preferred stock dividend.
​
Calculate the earnings per share for the current year.

A Company Had the Following Stockholders' Equity Information Available at Year-End