In: Accounting
Net Income for the period totaled OMR75,000,preferred dividends paid totaled OMR10,000 and common dividends paid totaled OMR30,000.If there 100,000 common shares outstanding throughout the year.What was the earnings per common share
(a)44.50 OMR
(b)0.35 OMR
(c)0.65 OMR
(d) 4.50 OMR
Calculation of Earnings Per Common Share
Given information in the problem
Net Income for the period totaled = OMR75,000
preferred dividends paid totaled = OMR 30,000
common shares outstanding throughout the year = 1,00,000
Earnings Per Share = Net Income - Dividends on Preferred Stock / Average outstanding shares
= 75,000 - 10,000 / 1,00,000
= 0.65 OMR
option (c)0.65 OMR is the correct option
option (c)0.65 OMR is the correct option