Weighted-average shares of common stock
Grossmont Company reports $1,375,500 of net income for 2011 and declares $192,500 of cash dividends on its preferred stock for 2011. At the end of 2011, the company had 350,000 weighted-average shares of common stock.
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Determine the earnings per share of common stock under each of the two plans, assuming income before bond interest and income tax is $600,000.
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