Question

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

Answer 1

$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