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    Earnings per share

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    Please help me to better understand this problem. Please put in excel with explanations so I can understand it better.

    At December 31, 2009, Schroeder Corporation had the following stock outstanding.

    8% cumulative preferred stock, $100 par, 107,500 shares $10,750,000
    Common stock, $5 par, 4,000,000 shares 20,000,000

    During 2010, Schroeder did not issue any additional common stock. The following also occurred during 2010.

    Income from continuing operations before taxes $21,650,000
    Discontinued operations (loss before taxes) 3,225,000
    Preferred dividends declared 860,000
    Common dividends declared 2,200,000

    Effective tax rate 35%

    Compute earnings per share data as it should appear in the 2010 income statement of Schroeder Corporation. (Round to two decimal places)

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    Solution Summary

    The solution explains how to calculate earnings per share