a company reports the following net income 150000 preferred

a company reports the following
net income 150000
preferred dividends. 10000
shares of common stock 20000
market price per share of common stock 35.00

determine the company\'s earnings per share on common stock

Solution

EPS=(Net income-Preferred dividends)/Outstanding common shares

which is equal to

=( 150000-10000)/20000

which is equal to

=$7