Earnings per share = Net income - Dividends on preferred stock /Shares of common stock outstanding
Earnings per share = ($880,000 -$120,000) /200,000
Earnings per share = $ 3.80
Peter Wong Corporation had net income reported for 2014 of $880,000. During 2014, dividends of $120,000 were declared on preferred stock and dividends of $200,000 were declared on common stock. There were no changes in the 200,000 shares of common stock or the 40,000 shares of preferred stock outstanding during 2014. The earnings per share to be reported for 2014 is?
