Having trouble calculating Preferres dividends?

Joined
Oct 12, 2014
Messages
1
Reaction score
0
Hello I am having a bit of trouble on one of my hw questions and would be greatly appreciative if someone could help me out.

Currently I am trying to calculate the earnings per share of common stock, but I am having trouble calculating the preferred dividends.

I am given two companies and a balance sheet.

Build it Right Structurally Sound
Preferred Stock,5%,$100par 20,000
Common stock,$1.00 par, 6000 shares 6000
Common stock,$2.50 par, 3000 shares 7,500

The formula for earnings per share of common stock is Net income - preferred dividends/(average number of shares of common stock outstanding)

Calculating the preferred dividends for both companies and the average number of shares of common stock outstanding has me stumped.

Any help would greatly be appreciated!
Thank you!
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

Forum statistics

Threads
11,783
Messages
27,852
Members
21,797
Latest member
4GTFull1

Latest Threads

Top