Question

Mayan Company had net income of $132,000. The company had 89,000 shares of common stock issued. The company had 9,000 shares of treasury stock. The company declared a $27,000 dividend on its preferred stock. There were no other stock transactions. What is the company's Earnings Per Share

Answer 1

The company's Earnings Per Share is $1.18

Step-by-step explanation:

Earnings per share = Earnings Attributable to Holders of Common Stock / Weighted Average Number of Common Stock Holders

= ($132,000 - $27,000) / 89,000

= $1.179775 or $1.18