See attached file
Calculate earnings per share and comment on the trend.
The Dicker Company has the following pattern of financial data for Years 1 and 2:
Year 1 Year 2
Net Income $40,000 $42,000
Preferred stock (5%) $450,000 $550,000
Weighted average number of
Common shares outstanding 38,000 38,000
Calculate earnings per share and comment on trend.© BrainMass Inc. brainmass.com June 3, 2020, 7:14 pm ad1c9bdddf
The Earnings per Share is calculated as (Net Income - Preferred Dividend)/Number of Shares Outstanding
Net Income = 40,000
Preferred Dividend is ...
The solution explains how to calculate the earnings per share.