Clarke Corporation had net income of $365,000,paid its required preferred dividend of $17,500 and had no other share transactions during the year.If the weighted-average number of common shares outstanding during the year is 69,500,the earnings per share is:

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Earnings per share (EPS) is calculated by subtracting preferred dividends from net income and then dividing by the weighted-average number of common shares outstanding. Here, EPS = ($365,000 - $17,500) / 69,500 = $347,500 / 69,500 = $5.00.

Clarke Corporation Had Net Income of $365,000,paid Its Required Preferred