Leckbee Corporation's Net Income for the Most Recent Year Was

question 15

Essay

Leckbee Corporation's net income for the most recent year was $3,270,000. A total of 500,000 shares of common stock and 200,000 shares of preferred stock were outstanding throughout the year. Dividends on common stock were $2.70 per share and dividends on preferred stock were $1.10 per share.
Required:
Compute the earnings per share of common stock. Show your work!

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Definitions:

Riskiness Of Investments

The degree of uncertainty associated with the returns on investments, indicating the potential to lose some or all of the original investment.

Investment Turnover

A financial ratio that measures the efficiency of a company's use of investments in assets to generate sales or revenue.

Return On Sales

A financial ratio that calculates the percentage of sales revenue that has turned into profits, indicating how efficiently a company is operating.

Sales Revenue

The full income received from goods sales or service delivery before taking out any operational costs or expenditures.