Net income was $200,800 for the year. Throughout the year the company had outsta
ID: 2334405 • Letter: N
Question
Net income was $200,800 for the year. Throughout the year the company had outstanding 12,000 shares of $3.00, $100 par value preferred stock and 103,000 shares of common stock. Required: Calculate basic earnings per share of common stock for the year. (Round "Earnings per share-basic" to 2 decimal places.)
Net income was $200,800 for the year. Throughout the year the company had outstanding 12,000 shares of $3.00, $100 par value preferred stock and 103,000 shares of common stock. Required: Calculate basic earnings per share of common stock for the year. (Round "Earnings per share-basic" to 2 decimal places.)
Net income was $200,800 for the year. Throughout the year the company had outstanding 12,000 shares of $3.00, $100 par value preferred stock and 103,000 shares of common stock. Required: Calculate basic earnings per share of common stock for the year. (Round "Earnings per share-basic" to 2 decimal places.) Net income was $200,800 for the year. Throughout the year the company had outstanding 12,000 shares of $3.00, $100 par value preferred stock and 103,000 shares of common stock. Required: Calculate basic earnings per share of common stock for the year. (Round "Earnings per share-basic" to 2 decimal places.)
Explanation / Answer
Dividend for preferred Stock = $12000*3 =$36000
Net income available for Shareholders = $200,800-$36000 = $172,800
Basic Earning Per Share = $172,800/103,000= $1.60