Explore BrainMass

Explore BrainMass

    Calculating Earnings Per Common Share

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    At December 31, 2007 and 2006, Broken Arrow Corp. had 180,000 shares of common stock ad 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2007 or 2006. Net income for 2007 was $400,000. For 2007, earnings per common share amounted to?

    © BrainMass Inc. brainmass.com December 24, 2021, 8:06 pm ad1c9bdddf
    https://brainmass.com/business/accounting/calculating-earnings-common-share-248228

    Solution Preview

    The formula is: (net income - dividends on preferred stock) / average outstanding shares

    In following that we know the net income was ...

    Solution Summary

    A tutorial is provided on how to calculate earnings per common share.

    $2.49

    ADVERTISEMENT