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    bilby_jonathan's Avatar
    bilby_jonathan Posts: 3, Reputation: 1
    New Member

    Jun 3, 2007, 11:27 PM
    Calculate earnings per share
    Quark company earned $90,000 in income and paid cash dividends of $10,000 to preferred shareholders during the current year. Quark had 12,500 weighted-average shares of common stock outstanding for the year.

    Calculate the company's earnings per share.
    J_9's Avatar
    J_9 Posts: 40,298, Reputation: 5646

    Jun 3, 2007, 11:31 PM
    Please read this announcement regarding homework help
    omsailogistic's Avatar
    omsailogistic Posts: 39, Reputation: -1
    Junior Member

    Jun 4, 2007, 04:32 AM
    Concept: The common stock holders are entitled to receive share in profits ( in the form of dividend) only after all obligations ( interest, pref dividend etc ) have been paid.

    Therefore amount available for common stockholders = $90000 - $ 10000
    = $80000
    Outstanding Stock = 12500

    EPS = $80000 / 12500
    EPS = 6.4 PER SHARE

    Hope you find the answer :-)

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