Reference no: EM132270379

Question - At December 31, 2016 Tim Mattke Corporation has the following stock outstanding:

10% cumulative preferred stock, $100 par, 107,500 shares $10,750,000

Common stock, $5 par, 4,000,000 shares 20,000,000

During 2017, Tim Mattke did not issue any additional common stock. The following also occurred during 2017.

Income from continuing operations before taxes $23,650,000

Discontinued operations before tax benefit ($3,225,000)

Preferred dividends declared $1,075,000

Common dividends declared $2,200,000

Effective tax rate 35%

Required: Compute the earnings per share as it should appear in the 2017 Income Statement of Tim Mattke Corporation.