B’s net income for 2016 was $1,385,000. Throughout 2016, B had 575,000 shares of $1 par...

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B’s net income for 2016 was $1,385,000. Throughout 2016, B had 575,000 shares of $1 par...

B’s net income for 2016 was $1,385,000. Throughout 2016, B had 575,000 shares of $1 par value common stock outstanding and 30,000 shares of 3%, $100 par value, cumulative preferred stock outstanding. During 2016, B distributed $180,000 of dividends on its preferred stock and $115,000 of dividends on its common stock. Compute B’s basic earnings per share. ROUND TO NEAREST PENNY.

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Answer 1

Answer #1

Earning per share = (Net income-Preferred dividend)/Share outstanding

= (1385000-180000)/575000

Earning per share = 2.10 per share

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Answer 2

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Add Answer to: B’s net income for 2016 was $1,385,000. Throughout 2016, B had 575,000 shares of $1 par...

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