# Calculate basic EPS Net income was \$659,250 for the year. Throughout the year the company had outstanding 18,000 shares of \$2.50, \$50 par value preferred stock and 105,000 shares of common stock.Required:Calculate basic earnings per share of common stock for the year.

Question

Calculate basic EPS Net income was \$659,250 for the year. Throughout the year the company had outstanding 18,000 shares of \$2.50, \$50 par value preferred stock and 105,000 shares of common stock.
Required:
Calculate basic earnings per share of common stock for the year.

Step 1

Earnings per share (EPS):

Earnings per share is the monetary earnings available to shareholder per common share that are outstanding. EPS helps in  determining the company's profitability.

Step 2

Calculate the value of preferred dividend:

Step 3

Calculate the basic earnings per share...

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