Question

Brief Exercise 4-08 In 2020, Kingbird Corporation reported net income of $1,171,600. It declared and paid preferred stock dividends of $265,400. During 2020, Kingbird had a weighted average of 209,100 common shares outstanding. Compute Kingbird 2020 earnings per share. (Round earnings per share to 2 decimal places, e.g. 1.48.) Kingbird 2020 earnings per share $enter Kingbird's 2017 earnings per share in dollars rounded to 2 decimal places

Answer 1

Answer:

$4.33 per share

Explanation:

Given that,

Net income = $1,171,600

Preferred stock dividends paid = $265,400

weighted average of common shares outstanding = 209,100

Therefore,

Earnings per share:

= (Net income - Preferred stock dividends paid) ÷ weighted average of common shares o/s

= ($1,171,600 - $265,400) ÷ 209,100

= $906,200 ÷ 209,100

= $4.33 per share

Hence, the Kingbird 2020 earnings per share is $4.33.