A corporation has 3000 shares,10% preferred stock of $55.00 par preferred stock,and 6000 shares of common stock outstanding.The net income for the year is $300,000.Calculate earnings per share.(Round your answer to the nearest cent.)

Question

Quizplus · Accepted Answer

Earnings per share = (Net Income - Preferred dividend) / Weighted average number of common shares outstanding
 11ea8873_d4fe_db06_bb89_57ccfa7aa7da_TB5026_00 *Preferred dividend = 3000 × $55.00 × 10% = $16,500

A Corporation Has 3000 Shares,10% Preferred Stock of $55