Gonzalez Company reported net income of $2,600 million in 2016. The weighted average number of common shares outstanding during 2016 was 1,108 million shares. Gonzalez paid $90 million in dividends on preferred stock. How much is basic earnings per share amount for 2016?

Gonzalez Company reported net income of $2,600 million in 2016. The weighted average number of common shares outstanding during 2016 was 1,108 million shares. Gonzalez paid $90 million in dividends on preferred stock. How much is basic earnings per share amount for 2016?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

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Gonzalez Company reported net income of $2,600 million in 2016. The weighted average number of common shares outstanding during 2016 was 1,108 million shares. Gonzalez paid $90 million in dividends on preferred stock.

How much is basic earnings per share amount for 2016?

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