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    Earnings Per Common Shares of Stock

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    At December 31, 2011 and 2010, Miley Corp. had 180,000 shares of common stock and 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2011 or 2010. Net income for 2011 was $400,000. For 2011, earnings per common share amounted to:

    a) 2.22
    b) 1.94
    c) 1.67
    d) 1.11

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    Solution Preview

    At December 31, 2011 and 2010, Miley Corp. had 180,000 shares of common stock and 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2011 or 2010. Net income for 2011 was $400,000. For 2011, earnings per common share amounted to:

    a) 2.22
    b) 1.94
    c) 1.67
    d) ...

    Solution Summary

    The expert calculates earnings per common shares of stock.

    $2.19