Keanu inc has net income of 200000 average shares of common, Accounting Basics

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Keanu inc has net income of 200000 average shares of common

Question: Keanu Inc. has net income of $200,000, average shares of common stock outstanding of 40,000, and preferred dividends for the period of $20,000. What is Keanu's earnings per share of common stock? Fred Tyme, the president of Keanu, believes that the computed EPS of the company is high. Comment.

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