Earnings per share of common stock outstanding
You are required to compute the earnings per share ratio of the company for the year 2016. Net income for the year 2016: $1,500,000 6% cumulative preferred stock outstanding on December 31, 2016: $3,000,000 $15 par value common stock outstanding on December 31, 2016: $2,376,000. The earnings (net income after income taxes) available for the common stockholders is: *The preferred dividend requirement is the annual dividend of $9 per share (9% times $100 par value) times the 300 shares of preferred stock outstanding.