Mayan Company had net income of $33,670. The weighted-average common shares outs
ID: 2595622 • Letter: M
Question
Mayan Company had net income of $33,670. The weighted-average common shares outstanding were 9,100. The company declared a $3,800 dividend on its noncumulative, nonparticipating preferred stock. There were no other stock transactions. The company's earnings per share is:
Mayan Company had net income of $33,670. The weighted-average common shares outstanding were 9,100. The company declared a $3,800 dividend on its noncumulative, nonparticipating preferred stock. There were no other stock transactions. The company's earnings per share is:
Explanation / Answer
earnings per share=(Net income-Preferred dividends)/ weighted-average common shares outstanding
=(33670-3800)/9100
which is equal to
=$3.28(Approx).