Hillman Inc. has net income of $160,000, weighted average shares of common stock outstanding of 50,000, and

Question:

Hillman Inc. has net income of $160,000, weighted average shares of common stock outstanding of 50,000, and preferred dividends for the period of $40,000.What is Hillman’s earnings per share of common stock? Kate Hillman, the president of Hillman Inc., believes the computed EPS of the company is high. Comment.

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...