A corporation has 3,000 shares,10% preferred stock of $50.00 par preferred stock,and 6,000 shares of common stock outstanding.The net income for the year is $290,000.Calculate earnings per share.(Round your answer to the nearest cent. )
A)$50.00
B)$45.83
C)$48.33
D)$96.67

Question

Quizplus · Accepted Answer

B)Earnings per share = (Net Income - Preferred dividend)/ Weighted average number of common shares outstanding
 11ea8a42_4f7a_e474_8b44_fb50208e9354_TB5024_00 *Preferred dividend = 3,000 × $50.00 × 10% = $15,000

A Corporation Has 3,000 Shares,10% Preferred Stock of $50