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Ecker Company reports $1,375,000 of net income and declares $192,500 of cash dividends on its preferred stock for the year. AEcker Company reports $1,375,000 of net income and declares $192,500 of cash dividends on its preferred stock for the year. A

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Answer #1
Net income $   1,375,000
Less: to Preferred stockholders $    (192,500)
Net income available to common stockholders $   1,182,500

2.

Net income available to common stockholders / Weighted average shares of common stock = Basic Earning per share
$                                                                  1,182,500 / 260,000 = 4.548076923

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