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During 2020, Mavs Inc, earned a net income of $1,000,000. They paid a dividend of $50,000 to their preferred stockholders and
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Answer #1

EPS is calculated by dividing Earning available for common shareholders (Net income less preferred dividend) by No. of Common Share Outstaning at the end and therefore EPS for above question would be $38. (See Calculation below)

Calculation of EPS:

Net Income Less: Preference Dividend Earning available for Common Shareholders (A) No. of Common Share outstandings (B) Earni

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