Ask Question
6 July, 05:10

During the current year, Comma Co. had outstanding: 25,000 shares of common stock; 8,000 shares of $20 par, 10% cumulative preferred stock; and 3,000 bonds that are $1,000 par and 9% convertible.

+2
Answers (1)
  1. 6 July, 06:23
    0
    B) $7.36

    Explanation:

    The preferred stocks' dividends = 8,000 x $20 x 10% = $16,000

    To calculate earnings per share (EPS), we subtract the preferred stocks dividends from the net income = $200,000 - $16,000 = $184,000

    Now we divide by the total number of common stocks = $184,000 / 25,000 shares = $7.36

    *Convertible bonds are not included in this calculation, they should be included only after they are converted into stock.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “During the current year, Comma Co. had outstanding: 25,000 shares of common stock; 8,000 shares of $20 par, 10% cumulative preferred stock; ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers