Question

My Comment "This is complete question. To the person who said years has to be given. You just dont know how to do it so leave it."

Greencastle Inc. reported a net income of $832,000 and a weighted average number of common shares of 290,000 for the year. It also had 47,000 $2 preferred shares. Calculate basic earnings per share assuming the preferred shares are cumulative and the dividend was not paid. (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share $ e Textbook and Media Calculate basic earnings per share assuming the preferred shares are noncumulative and the dividend was paid. (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share $ Calculate basic earnings per share assuming the preferred shares are noncumulative and the dividend was not paid. (Round answer to 2 decimal places, e.g. 15.25.) Basic earnings per share $

Answer 1

1.
Earnings attributable to common stockholders = Net Income - preferred dividend
= $832000 - 47000 x $2 = $738000

Basic Earnings per share = Earnings attributable to common stockholders / Common Stock outstanding
= $738000 / 290000 = $2.54 per share

2.
Earnings attributable to common stockholders = Net Income - preferred dividend
= $832000 - 47000 x $2 = $738000

Basic Earnings per share = Earnings attributable to common stockholders / Common Stock outstanding
= $738000 / 290000 = $2.54 per share

3.
Earnings attributable to common stockholders = Net Income - preferred dividend
= $832000 - 0 = $832000

Basic Earnings per share = Earnings attributable to common stockholders / Common Stock outstanding
= $832000 / 290000 = $2.87 per share