Pharoah Corporation had 2017 net income of $1,001,000

Accounting May 23, 2021

Pharoah Corporation had 2017 net income of $1,001,000. During 2017, Pharoah paid a dividend of $2 per share on 43,250 shares of preferred stock. During 2017, Pharoah had outstanding 295,000 shares of common stock. Compute Pharoah's 2017 earnings per share

(Round answer to 2 decimal places, e.g. 3.56)

Expert Solution

Answer:

Preferred dividend=(2*43250)=$86500

EPS=(Net income-Preferred dividend)/Common stock outstanding

=(1001000-86500)/295000

=3.1

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