A company had the following stockholders' equity information available at year-end: - Reported 11,000 shares of $2 par common stock issued. - Reported 5,000 shares of $50 par, 6% preferred stock issued and outstanding. - Held 1,000 shares of treasury stock purchased in the previous year. - Reported net income of $200,000 for the current year. - Declared and paid the preferred stock dividend during the current year. Determine the earnings per share for the current year. Round your answer to two decimal places
A company had the following
- Reported 11,000 shares of $2 par common stock issued.
- Reported 5,000 shares of $50 par, 6% preferred stock issued and outstanding.
- Held 1,000 shares of
- Reported net income of $200,000 for the current year.
- Declared and paid the preferred stock dividend during the current year.
Determine the earnings per share for the current year. Round your answer to two decimal places
Earnings per share on common stock: It is a financial ratio. It is calculated by dividing net earnings available to common shareholders by the average outstanding common shares over a certain period of time. This ratio indicates a company’s ability to produce net profits for common shareholders.
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