Hazard Guard Insurance Company had 100,000 shares of $4, $100 par value preferred stock issued and outstanding

Question:

Hazard Guard Insurance Company had 100,000 shares of $4, $100 par value preferred stock issued and outstanding during 2006. In addition, the company had 500,000 shares of common stock issued, of which 100,000 shares were held as Treasury stock. Hazard had $1,500,000 of income before taxes and extraordinary items. Hazard experienced earthquake damage to a regional sales office resulting in a before-tax extraordinary loss of $200,000. The income tax rate was 40%. Determine the earnings per share disclosure for Hazard Guard.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...