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Coronado Industries had 293000 shares of common stock issued and outstanding at December 31, 2020
Coronado Industries had 293000 shares of common stock issued and outstanding at December 31, 2020. No common stock was issued during 2021. On January 1, 2021, Coronado issued 200000 shares of nonconvertible preferred stock. During 2021, Coronado declared and paid $110000 cash dividends on the common stock and $79000 on the preferred stock. Net income for the year ended December 31, 2021 was $618000. What should be Coronado's 2021 earnings per common share?
$1.84
$1.73
$1.46
$2.11
Expert Solution
Calculation of Coronado's 2021 Earnings per Common Share:
Earning per Share = Net Income for Common Stock/Average Outstanding Common Stock
Here,
Net income for Common stock (618,000-79,000) = 539,000
Earning per Share = 539,000/293,000 = $1.84
So, the correct option is 1st "$1.84".
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