Hedley Corporation had 2020 net income of $1.4 million. During 2020, Hedley paid a dividend of $5...

Question

Hedley Corporation had 2020 net income of $1.4 million. During 2020, Hedley paid a dividend of $5 per share on 100,000 preferred shares. Hedley also had 220,000 common shares outstanding during the year. Calculate Hedley's 2020 earnings per share. Round to the nearest cent.

Rochak · Accepted Answer

Net Income = $1,400,000
Dividend Paid (Preferred Shares) = $5 per share
Number of Preferred Shares = 100,000
Common Shares outstanding = 220,000
Earning Per Share = (Net Income – (Dividend Paid (Preferred Shares)*Number of Preferred Shares))/Common Shares Outstanding
= ($1,400,000 – ($5 * 100,

Hedley Corporation had 2020 net income of $1.4 million. During 2020, Hedley paid a dividend of $5 per share on 100,000 preferred shares. Hedley also had 220,000 common shares outstanding during the...

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