Question

EPS Junkyard Arts, Inc., had earnings af $195,20o for the year. The company had 22,000 shares of common stock outstanding during the year and issued 3,600 shares of $50 par value preferred stock. The preferred stack has a dividend of $9 per share. either common or preferred stack during the year. There were transactions Determine the basic earnings per share for Junkyard Arts for the year. Round answer to two decimal places. per share

Answer 1

1

total preferred shares outstanding dividend per share for preferred shares total dividend to preferred shares 3,600 $ 9 32,400 total earnings total dividend to preferred shares earnings for equity /shares of common stock outstanding $ 195,200 $32,400 $162,800 22,000 basic earnings per share $ 7.40 $ 7.40 per share hence, the basic earnings per share is Il II