Kinley Inc. provides the following information for the year 2016: Net Income                                                         $225,000 Market Price per Share of Common Stock                  $50 per share Dividends Paid                                                      $50,000 Common Stock Outstanding on Jan. 1, 2016              120,000 shares Common Stock Outstanding on Dec. 31, 2016            210,000 shares The company has NO preferred stock outstanding. Calculate the Earnings Per Share for the year 2016.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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 Kinley Inc. provides the following information for the year 2016:

Net Income                                                         $225,000
Market Price per Share of Common Stock                  $50 per share
Dividends Paid                                                      $50,000
Common Stock Outstanding on Jan. 1, 2016              120,000 shares
Common Stock Outstanding on Dec. 31, 2016            210,000 shares


The company has NO preferred stock outstanding. Calculate the Earnings Per Share for the year 2016.

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Do i divide the net income by both common stocks?

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