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PEFERED SHARES: 3000 SHARESAUTHORIZZED SHARES: 18000 SHARESISSUED SHARES: 15000 SHARESTOTAL DIVDEND FOR THE YEAR: Php7500000TOTAL DIVIEND FOR PREFFERED SHARES IS 35% OT THE TOTAL DIVIDENDS FOR THE YEARHOW MUCH IS THE EARNINGS PER SHARE?

Question

PEFERED SHARES: 3000 SHARESAUTHORIZZED SHARES: 18000 SHARESISSUED SHARES: 15000 SHARESTOTAL DIVDEND FOR THE YEAR: Php7500000TOTAL DIVIEND FOR PREFFERED SHARES IS 35% OT THE TOTAL DIVIDENDS FOR THE YEARHOW MUCH IS THE EARNINGS PER SHARE?

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Solution

To calculate the earnings per share, we first need to determine the total dividends for preferred shares and then subtract that from the total dividends for the year to find the dividends for common shares. After that, we divide the dividends for common shares by the number of common shares. Here's how to do it:

  1. Calculate the total dividends for preferred shares: 35/100 * Php7500000 = Php2625000
  2. Subtract the total dividends for preferred shares from the total dividends for the year to find the dividends for common shares: Php7500000 - Php2625000 = Php4875000
  3. The number of common shares is the difference between issued shares and preferred shares: 15000 - 3000 = 12000 shares
  4. Finally, divide the dividends for common shares by the number of common shares to find the earnings per share: Php4875000 / 12000 = Php406.25

So, the earnings per share is Php406.25.

This problem has been solved

Similar Questions

PEFERED SHARES: 1980 SHARESAUTHORIZZED SHARES: 12550 SHARESUNISSUED SHARES: 2500 SHARESTOTAL DIVDEND FOR THE YEAR: Php 6,500,250TOTAL DIVIEND FOR PREFFERED SHARES IS 25% OT THE TOTAL DIVIDENDS FOR THE YEARHOW MUCH IS THE TOTAL DIVIDEND FOR THE 1980 SHARES?

Fill in the Blank QuestionFill in the blank question.Earnings per share is equal to income divided by the number of outstanding of a firm's common stock.

Fill in the Blank QuestionFill in the blank question.Earnings per share equals after-tax income divided by the number of outstanding.

Information concerning common stock as of November 30, the end of the company’s current fiscal year, is presented below.Number of shares outstanding460,000Par value per share$  5.00Dividends paid per share in current year6.00Market price per share54.00Basic earnings per share18.00Diluted earnings per share12.00The price-earnings ratio for the common stock is

earnings per share is the ratio of net income after taxes to the number of common stock shares outstanding.

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