Question 2

Company XYZ had the following information in their stockholder's equity section of the balance sheet during 2020:

5% preferred stock, $10 par, 10,000 shares: $100,000

Common stock, $0.01 par, 5,000,000 authorized shares, 3,000,000 outstanding shares: $30,000

Retained earnings: $122,500

The company had net income of $21,300 for the year. They declared and paid preferred dividends of $5,000. They also declared and paid dividends to common shareholders of $3,200. Compute EPS.