Question

Mayan Company had net income of $33,580. The weighted-average common shares outstanding were 9,200. The company declared a $3,900 dividend on its noncumulative, nonparticipating preferred stock. There were no other stock transactions. The company's earnings per share is:

Answer 1

3.23 per share

Step-by-step explanation:

Given that,

Net income = $33,580

Preferred dividends = $3,900

Weighted-average common shares outstanding = 9,200

Therefore,

Earnings per share :

= (Net income - Preferred dividends) ÷ outstanding common shares

= ($33,580 - $3,900) ÷ 9,200

= 29,680 ÷ 9,200

= $3.23 per share

Hence, the company's earnings per share is $3.23 per share.