In 2020, Pharoah Company reported a discontinued operations loss of $1120000, net of tax. It declared and paid preferred stock dividends of $110000 and common stock dividends of $370000. During 2020, Pharoah had a weighted average of 500000 common shares outstanding. As a result of the discontinued operations loss, net of tax, the earnings per share would decrease by

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Business

Desirae Griffith

11 October, 21:19

In 2020, Pharoah Company reported a discontinued operations loss of $1120000, net of tax. It declared and paid preferred stock dividends of $110000 and common stock dividends of $370000. During 2020, Pharoah had a weighted average of 500000 common shares outstanding. As a result of the discontinued operations loss, net of tax, the earnings per share would decrease by

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Xzavier Mann · Answer 1

As a result of the discontinued operations loss, net of tax, the earnings per share would decrease by $2.24.

Explanation:

Change in EPS

= $1120000 : 500000 outstanding shares

= $2.24.