Answer:
Sarasota’s earnings per common share is $2.82
Explanation:
Earning per share is the measurement of earning attributed to the common stockholders of the company for each share of the company.
Number of outstanding shares = 400,000
Issued during the year = 200,000
Total outstanding shares = 400,000 + 200,000 = 600,000 shares
Net income for the year = $2,070,000
Earning per share = ( Net income - Preferred Dividend ) / Number of outstanding shares
Earning per share = ( $2,070,000 - $380,000 ) / 600,000 shares = $1,690,000 / 600,000 shares = $2.82 per share
