macboudr8261 macboudr8261

05-03-2020
Mathematics

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A company reports the following: Net income $1,113,910 Preferred dividends $82,510 Shares of common stock outstanding 60,000 Market price per share of common stock $49.85 Calculate the company's earnings per share on common stock. Round your answer to the nearest cent. $

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musiclover10045 musiclover10045

05-03-2020

Earnings per share = net income - preferred dividends / shares of common stock

Earnings per share = 1,113,910 - 82,510 / 60,000

= 1,031,400/60,000

= $17.19

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