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san4es73 [151]
3 years ago
14

A company reports the following: Net income $595,900 Preferred dividends $44,140 Shares of common stock outstanding 44,000 Marke

t price per share of common stock $36.37 Calculate the company's earnings per share on common stock. Round your answer to the nearest cent.
Business
1 answer:
DiKsa [7]3 years ago
3 0

Answer:

$12.54

Explanation:

The computation of the earning per share is shown below:

Earnings per share =  (Net Income - Preferred Dividend) ÷ (Share of common stock outstanding )

= ($595,900 - $44,140) ÷ (44,000 common stock outstanding shares )

= $551,760 ÷ 44,000  common stock outstanding shares

= $7.5

= $12.54

Hence, the earning per share is $12.54

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