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Calculate the earnings per share of common stock

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Problem - Based on the following information, calculate the earnings per share of common stock.

Earnings before interest and income tax $500,000

Dividends on preferred stock $6,000

Interest on bonds $10,000

Income tax rate 40%

Shares of common stock outstanding 72,000 shares

a. $2.8

b. $6.0

c. $7.2

d. $4.0

Reference no: EM132471871

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