Company earnings per share on common stock


A company reports the following:

Net income ................................. $525,000

Preferred dividends .......................... $25,000

Shares of common stock outstanding ........ 50,000

Market price per share of common stock ... $75.00

a. Determine the company's earnings per share on common stock.

b. Determine the company's price-earnings ratio.

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Finance Basics: Company earnings per share on common stock
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