Business
Answer:
Worksheet showing earnings per share for the company:
Answer:
Worksheet showing earning per share:
Basic earnings per share is calculated by taking net income less dividend requirements, which in this case is 8% for preferred stock, and dividing it by the weighted average common shares outstanding. Diluted earnings per share is calculated the same way except outstanding preferred stock is converted into outstanding common stock and added to the weighted average common shares outstanding.
Answer:
Worksheet showing earnings per share for 2012:
Basic earnings per share is calculated by taking net income less dividend requirements, which in this case is 8% for preferred stock, and dividing it by the weighted average common shares outstanding. Diluted earnings per share is calculated the same way except outstanding preferred stock is converted into outstanding common stock and added to the weighted average common shares outstanding.