Answer:
$1.87 per share
Explanation:
The formula to compute the earning per share is shown below:
Earning per share = (Net income - preference dividend) ÷ (Number of shares)
where,
Preference dividend would be
= Number of shares × par value per share × dividend rate
= 9,000 shares × $100 × 5%
= $45,000
And, the number of shares would be
= 290,000 + 290,000
= 580,000 shares
we take 290,000 shares again because of 100% stock dividend declared
And, the net income is $1,130,000
Now put these values to the above formula
So, the value would be equal to
= ($1,130,000 - $45,000) ÷ (580,000 shares)
= $1.87 per share
