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    Earnings per share

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    Calculate earnings per share for the following:

    Net income $ 500,000
    Interest expense $ 50,000
    Preferred Dividends paid $ 75,000
    Common Dividends paid $ 100,000
    Preferred shares outstanding $ 50,000
    Common shares outstanding $ 100,000

    Please explain

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    Earnings per share is calculated on common shares and is the income available on each common ...

    Solution Summary

    The solution explains how to calculate earnings per share.