A corporation has 4,000 shares,10% preferred stock of $55.00 par preferred stock,and 8,000 shares of common stock outstanding.The net income for the year is $260,000.Calculate earnings per share.(Round your answer to the nearest cent. )

Question

Quizplus · Accepted Answer

B)Earnings per share = (Net Income - Preferred dividend)/ Weighted average number of common shares outstanding
 11ea86d6_83b6_582f_92b6_3d2efbe8ccee_TB2804_00 *Preferred dividend = 4,000 × $55.00 × 10% = $22,000

A Corporation Has 4,000 Shares,10% Preferred Stock of $55