Question

3) The Bissiges Baby Corporation had current year net income of $237,500. It paid preferred dividends of

$40,000 cash and had 480,000 weighted-average shares of common stock outstanding. Calculate the
corporation's earnings per share.​

Answer 1

The earnings per chare for the Baby Corporation was:

EPS = $0.14

This means that the profit generated to their stockholders was $0.14 in that given year.

Step-by-step explanation:

To calculate the Earnings Per Share of the Baby Corporation you must follow the formula below.

Earnings Per Share = net income - preferred dividends / average outstanding common shares then,

EPS = ($237,500 - $40,000) / 480,000

EPS = $0.14