Question

At December 31, 2018 and 2019, Frist Company had outstanding 50 million common shares and 4 million shares of 10%, $10 par cumulative preferred stock. Net income for 2019 was $20 million. No dividends were declared in 2018 or 2019. EPS for 2019 was:

Answer 1

Eet

Step-by-step explanation:

Answer 2

The EPS for 2019 was $0.32

Step-by-step explanation:

A Net Income $20,000,000

B No. of preferred Stock shares $4,000,000

C Par value per share $10.00

D = C*10% Dividend per share (10%) $1.00

E = B*D Preferred Dividend $4,000,000.00

F = A - E Net Income(Common Stockholders) $16,000,000.00

G Number of share(common stock)outstanding 50,000,000

H = F - G Earning per share for 2019 $0.32

Therefore,The EPS for 2019 was $0.32