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Earnings per share

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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)

Solution Summary

The solution explains how to calculate earnings per share