A Company Reports the Following ​
Calculate the Company's Earnings Per Share on Common Stock

question 136

Essay

A company reports the following: $$\begin{array} { l r } \text { Net income } & \$ 150,000 \\\text { Preferred dividends } & \$ 10,000 \\\text { Shares of common stock outstanding } & 20,000 \\\text { Market price per share of common stock } & \$ 35\end{array}$$ ​
Calculate the company's earnings per share on common stock.

---

Definitions:

Osmolal Solution

A solution characterized by its osmolality, which is a measure of the concentration of solutes per kilogram of solvent.

Osmole

A unit of measurement for the number of particles that contribute to the osmotic pressure of a solution.

Solute

A substance dissolved in another substance, typically the component of a solution present in the lesser amount.

Normal Blood pH

The typical pH range of human blood, which is tightly regulated to stay between 7.35 and 7.45.