Earnings per Share: Earnings per share help to measure the profitability of a company. Earnings per share are the amount of profit that is allocated to each share of outstanding stock. Formula: Earnings per share = Net income – Preferred dividends Weighted average number of common shares outstanding To determine: Earnings per share of a common stock. Given info: Net income, Preferred dividends, and weighted average shares of common stock outstanding.

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Chapter 13, Problem 22Q

To determine

Earnings per Share: Earnings per share help to measure the profitability of a company. Earnings per share are the amount of profit that is allocated to each share of outstanding stock.

Formula:

Earnings per share = Net income – Preferred dividendsWeighted average number of common shares outstanding

To determine:

Earnings per share of a common stock.

Given info:

Net income, Preferred dividends, and weighted average shares of common stock outstanding.

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