Problem

Guess Company reports $648,500 of net income for 2011 and declares $102,500 of cash divide...

Guess Company reports $648,500 of net income for 2011 and declares $102,500 of cash dividends on its preferred stock for 2011. At the end of 2011, the company had 260,000 weighted-average shares of common stock.

1.What amount of net income is available to common stockholders for 2011?


2. What is the company’s basic EPS for 2011?

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