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    Earnings per share

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    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


    Solution Preview

    The Earnings per Share is calculated as (Net Income - Preferred Dividend)/Number of Shares Outstanding

    Net Income = 40,000
    Preferred Dividend is ...

    Solution Summary

    The solution explains how to calculate the earnings per share.