A corporation had current year net income of $237,500. It paid preferred dividends of $40,000 cash and had 480,000 weighted-average shares of common stock outstanding. Calculate the corporation's earnings per share.

What will be an ideal response?


Earnings per Share = Net Income - Preferred Dividends/Weighted-Average Common Shares Outstanding
Earnings per Share = ($237,500 - $40,000)/480,000 shares = $0.41

Business

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