Question

Paula corporation had net income of $365,000.00, paid its required preferred dividend of $17,500.00, and had no other stock transactions during the year. if the average number of common shares outstanding during the year is 69,500, the earnings per share is

Answer 1

Okay, so this is, I think, a relatively basic , math question
365000 - 17500 = 347500
Then, we simply just:
347500/69500 = 5
So there is a $5 earning per share.
(I used a calculator to check my work, the numbers look good. Hope this helps.)