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JAX Corporation had net income for 2018 of $ 43 comma 700. JAX had 17 comma 400 shares of common stock outstanding at the beginning of the year and 15 comma 000 shares of common stock outstanding as of December​ 31, 2018. During the​ year, JAX declared and paid preferred dividends of $ 11 comma 300. Compute JAX​'s earnings per share.

Respuesta :

Answer:

$ 2.00

Explanation:

Firstly, we need to calculate average number of share outstanding during 2018:

Average share outstanding during 2018 = (17,400 + 15,000)/2 = 16,200

Next, we neet to calculate net income attributable to common shareholders of JAX Corporation:

Net income attributable to common shareholders of JAX Corporation = JAX Net income - Preferref dividend = 43,700 - 11,300 = 32,400.

Putting all the numbers together, JAX's earning per share is calculated as below:

JAX's earning per share = Net income to common shareholders/Average number of share outstandings = 32,400/16,200 = 2.00

So, JAX's earning per share is $ 2.00

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