At December 31, 2020, Millwood Corporation has 2,000 shares of $100 par value, 8%, preferred stock outstanding and 100,000 shares of $10 par value common stock issued. Millwood's net income for the year is $241,000.
Instruction
Compute the earnings per share of common stock under the following independend situations. (Round to two decimals.)
- The dividend to preferred stockholders was declared. There has been no change in the number of shares of common stock outstanding during the year.
- The dividend to preferred stock holders was not declared. The preferred stock is cumulative. Millwood held 10,000 shares of common treasury stock throughout the year.
Solution
