Brief Exercise 169 Your answer is incorrect Try again Blue C

Brief Exercise 16-9 Your answer is incorrect. Try again. Blue Corporation had 2017 net income of $906,000. During 2017, Blue paid a dividend of $2 per share on 48,000 shares of preferred stock. During 2017, Blue had outstanding 300,000 shares of common stock. Compute Blue\'s 2017 earnings per share. (Round answer to 2 decimal places, e.g. 3.56 Earnings per share 57per share Click if you would like to Show Work for this question: Open Show Work

Solution

Earnings for common shareholders =906000-(48000*2)= 810000 Earnings per share = Earnings for common shareholders /No. of common shares outstanding =810000/300000= $2.7