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EPS and Dividends Part 1: On January 1 of 2020, Black Forest Mining Company had 12,000 preferred shares outstanding with a $2.50 dividend entitlement. At

EPS and Dividends

Part 1: On January 1 of 2020, Black Forest Mining Company had 12,000 preferred shares outstanding with a $2.50 dividend entitlement. At the end of December the Weighted average number of common shares outstanding is 75,000 and the Profit after taxes but before dividends is $153,000. What is the Earnings Per Share?

Part 2: If Black Forest declared a Dividend of $60,000 for the year, how much would each common share receive in dividends?

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