Question

In 2022, Moreno Cheeses had a net income of $42,390, paid preferred dividends of $6,000, and had 18,000 shares of common stock outstanding. What was their earnings per share for 2022.

Answer 1

$2.02 per share

Step-by-step explanation:

The formula to compute the earning per share is shown below:

Earning per share = (Net income - preferred dividends) ÷ (Outstanding Number of shares)

= ($42,390- $6,000) ÷ (18,000 shares)

= ($36,390) ÷ (18,000 shares)

= $2.02 per share