Norling Corporation reports the following information: Net income

Question

Norling Corporation reports the following information:

Net income $750,000
Dividends on common stock 210,000
Dividends on preferred stock 90,000
Weighted average common shares outstanding 200,000

Norling should report earnings per share of

$2.25.

$2.70

$3.30.

$3.75.

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Lyla 3 weeks 2021-12-26T10:26:22+00:00 1 Answer 0 views 0

Answers ( )

    0
    2021-12-26T10:28:16+00:00

    Answer:

    The answer is $3.30.

    Step-by-step explanation:

    As we know

                 Earning \ per\  share\  (ESP)=\frac{net\ income-preferred\ income}{Weighted \ average\  common\  shares\  outstanding}

    Thus Putting values in the formula we get

                  Earning \ per\  share\  (ESP)=\frac{750,000-90,000}{200,000}

                  Earning \ per\  share\  (ESP)=\frac{660,000}{200,000}

                  Earning \ per\  share\  (ESP)=\ \$3.30

    So, the Earning per Shares are $3.30.

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