Explore BrainMass

Explore BrainMass

    Earnings per share

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

    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%

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

    © BrainMass Inc. brainmass.com June 3, 2020, 11:43 pm ad1c9bdddf
    https://brainmass.com/business/accounting/earnings-per-share-294668

    Solution Summary

    The solution explains how to calculate earnings per share

    $2.19

    ADVERTISEMENT