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Question - compute earnings per share

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Question - Compute Earnings per Share - MK Company has a simple capial structure. At December 31,2012, it had $500,000 of $100 par value 6% preferred stock outstanding, and $1,000,000 of $5 par value common stock outstanding. Net income for the year was $480,000. Compute the earnings per share of common stock assuming the dividend on preferred stock was not declared and the preferred stock is cumulative. The common shares remained unchanged during the year.

Reference no: EM132064121

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