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Ziegler Corporation reports net income of $380,000 and a weighted-average of 200,000 shares of common stock outstanding for the year. Compute the earnings per share of common stock

User Tshimkus
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1 Answer

4 votes

Answer:

$1.90 per share

Step-by-step explanation:

The computation of the earning per share is shown below:

Earning per share = (Net income - preference dividend) ÷ (weighted-average of shares of common stock)

= ($380,000 - $0) ÷ (200,000 shares)

= $1.90 per share

By dividing the net income with the weighted average number of shares of common stock we can get the earning per share

User Crowbent
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