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In 2020, Pharoah Company reported a discontinued operations loss of $1120000, net of tax. It declared and paid preferred stock dividends of $110000 and common stock dividends of $370000. During 2020, Pharoah had a weighted average of 500000 common shares outstanding. As a result of the discontinued operations loss, net of tax, the earnings per share would decrease by

User Norah
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1 Answer

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As a result of the discontinued operations loss, net of tax, the earnings per share would decrease by $2.24.

Step-by-step explanation:

Change in EPS

= $1120000 ÷ 500000 outstanding shares

= $2.24.

User HeavenHM
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