A Company Had the Following Stockholders' Equity Information Available at Year-End

question 155

Essay

A company had the following stockholders' equity information available at year-end.
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- Issued 11,000 shares of $2.00 par value common stock for $12.00 per share.
- Issued 5,000 shares of $50 par value 6% preferred stock for $70 per share.
- Purchased 1,000 shares of previously issued common stock for $15.00 per share.
- Reported net income of $200,000.
- Declared and paid the preferred stock dividend.
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Calculate the earnings per share for the current year.

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