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Norling Corporation reports the following information:

Net income $750,000
Dividends on common stock 210,000
Dividends on preferred stock 90,000
Weighted average common shares outstanding 200,000

Norling should report earnings per share of

$2.25.

$2.70

$3.30.

$3.75.

Respuesta :

umairfeb221999

Answer:

The answer is $3.30.

Step-by-step explanation:

As we know

             [tex]Earning \ per\ share\ (ESP)=\frac{net\ income-preferred\ income}{Weighted \ average\ common\ shares\ outstanding}[/tex]

Thus Putting values in the formula we get

              [tex]Earning \ per\ share\ (ESP)=\frac{750,000-90,000}{200,000}[/tex]

              [tex]Earning \ per\ share\ (ESP)=\frac{660,000}{200,000}[/tex]

              [tex]Earning \ per\ share\ (ESP)=\ \$3.30[/tex]

So, the Earning per Shares are $3.30.

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