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Sveta_85 [38]
3 years ago
5

In 2020, Pharoah Company reported a discontinued operations loss of $1120000, net of tax. It declared and paid preferred stock d

ividends of $110000 and common stock dividends of $370000. During 2020, Pharoah had a weighted average of 500000 common shares outstanding. As a result of the discontinued operations loss, net of tax, the earnings per share would decrease by
Business
1 answer:
Y_Kistochka [10]3 years ago
7 0

As a result of the discontinued operations loss, net of tax, the earnings per share would decrease by $2.24.

<u>Explanation:</u>

Change in EPS

= $1120000 ÷ 500000 outstanding shares

= $2.24.

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