Question
Can this please be explained: I do not see how to get to the $0.60 and $0.50. Earnings per share = (Net income - frefrence
Can this please be explained: I do not see how to get to the $0.60 and $0.50.
Earnings per share = (Net income - frefrence dividend)/Number of outstanding shares =($312,000-($312,000x40%))-$0/(1560000/$5)
=$0.60 EPS on common stock
Earnings per share =(Net income - frefrence dividend)/Number of outstanding shares = ($390,000-($390,000x40%))-((1290000/$10)x$1/(150000/$5) =$0.50
I do not understand how the math works with these sums. Please explain. I also do not know what Frefrence dividends are.
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Data Analytics for Accounting
Authors: Vernon Richardson
1st edition
1260375196, 9781260375183 , 978-1260375190
