1 Identify the major characteristics of a corporation
Preferred dividends = 500 x 0.08 x $100 = $4,000. Net income available for common stockholders = $49,000 – $4,000 = $45,000. Note: To present the EPS numbers, preferred dividends must be subtracted from all relevant EPS numbers. As a result, income from continuing operations = $64,000 – 4,000 = $60,000. Step 3. Calculate earnings per share. ................
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