Calculate earnings per share

Reference no: EM132217320

Problem - Earnings Per Share (EPS) & Return on Equity (ROE)

The following financial information is available for ABC Corporation.

	2013	2012
Average owner's equity	$800,000	$600,000
Dividends paid to common stockholders	50,000	30,000
Dividends paid to preferred stockholders	20,000	20,000
Net income	130,000	91,000

The weighted average number of shares of common stock outstanding was 40,000 for 2012 and 50,000 for 2013.

Instructions - Calculate earnings per share and return on common stockholders' equity for 2013 and 2012.

Reference no: EM132217320

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