Mayan Company had net income of $32,670. The weighted-average common shares outs
ID: 2462571 • Letter: M
Question
Mayan Company had net income of $32,670. The weighted-average common shares outstanding were 9,900. The company declared a $4,600 dividend on its noncumulative, nonparticipating preferred stock. There were no other stock transactions. The company's earnings per share is:
A.) $2.84.
B.) $3.30.
C.) $2.59.
D.) $3.51.
E.) $3.76.
Mayan Company had net income of $32,670. The weighted-average common shares outstanding were 9,900. The company declared a $4,600 dividend on its noncumulative, nonparticipating preferred stock. There were no other stock transactions. The company's earnings per share is:
Explanation / Answer
EPS=(Net income-Preferred dividend)/weighted-average common shares outstanding
=(32670-4600)/9900
which is equal to
=$2.84(Approx).