6%preferred stock,$50 par value, authorized
100,000 shares, outstanding 90,000 shares $4,5000,000
Common stock, $1 par authorized and issued 10 million shares 10,000,000
Additional paid-in capital 20,500,000
Retained earnings $134,000,000
Net income 33,000,000 167,000,000
$202,000,000
Net income for 2010reflects a total effective tax rate of 34%.Included in the net income figure is a loss of $12,000,000(before tax) as a result of major casualty, which should be classified as an extraordinary item. Preferred stock dividends of $270,000 were declared and paid in 2010.Dividends of $ 1,000,000 were declared and paid to common stockholders in2010.
Question Compute earnings per share as it should appear on the income statement.
