Question

Kalin Corporation had 2012 net income of 1,000,000. During 2012, Kalin paid a dividend of 2 per share on 100,000 shares of preferred stock. During 2012, Kalin had outstanding 250,000 shares of common stock. Compute Kalin's 2012 earnings per share?

Answer 1

The earnings per share for Kalin Corporation in 2012 is $4.

Step-by-step explanation:

To calculate the earnings per share (EPS) for Kalin Corporation in 2012, you need to divide the net income by the number of common shares outstanding. In this case, the net income is $1,000,000 and the number of common shares outstanding is 250,000. So the EPS would be:

EPS = Net Income / Number of Common Shares

EPS = $1,000,000 / 250,000

EPS = $4

Therefore, Kalin Corporation's 2012 earnings per share is $4.