At December 31, 2008, Amad Company had 600,000 shares of common stock issued and outstanding, 400,000 of which had been issued and outstanding throughout the year and 200,000 of which were issued on October 1, 2008. Net income for 2008 was $3,000,000, and dividends declared on preferred stock were $400,000. Compute Amad's earnings per common share. (Round to the nearest penny.)
At December 31, 2008, Amad Company had 600,000 shares of common stock issued and outstanding, 400,000 of which had been issued and outstanding throughout the year and 200,000 of which were issued on October 1, 2008. Net income for 2008 was $3,000,000, and dividends declared on preferred stock were $400,000. Compute Amad's earnings per common share. (Round to the nearest penny.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
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Problem 54E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Financial accounting

Transcribed Image Text:At December 31, 2008, Amad Company had 600,000
shares of common stock issued and outstanding, 400,000
of which had been issued and outstanding throughout the
year and 200,000 of which were issued on October 1,
2008. Net income for 2008 was $3,000,000, and
dividends declared on preferred stock were $400,000.
Compute Amad's earnings per common share. (Round to
the nearest penny.)
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