Hudson Company has preferred dividends of $1 5,000, a net income of $40,000. and average common shares outstanding of 8.000. What is Hudson’s earnings per share?
a. $2.13 c. $3.13
b. $2.67 d. $5.00
Hudson’s Earnings per share.
EPS is defined as that portion of a company’s profits allocated to each share of common stock.
They serve as an indicator of the company’s profitability.
They are calculated by using the formula
EPS = Total earnings/ Outstanding Shares...
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