EPS; nonconvertible preferred shares
Response to the following problem:
]At December 31, 2015 and 2016, Funk & Noble Corporation had outstanding 820 million shares of common stock and 2 million shares of 8%, $100 par value cumulative preferred stock. No dividends were declared on either the preferred or common stock in 2015 or 2016. Net income for 2016 was $426 million. The income tax rate is 40%. Calculate earnings per share for the year ended December 31, 2016.