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The following data has been extracted from the financial statements of Kilat Electronics Berhad.
Net income for the year 2020 was RM1,500,000.
6% cumulative preferred shares outstanding on 31 December 2020 was RM3,000,000.
RM15 par value common shares outstanding on 31 December 2020 was RM2,376,000.
The number of shares of both types of shares is the same as on 1 January 2020, because the company has not issued any new shares of common or preferred stock during the year 2020.
a. Calculate the earnings per share for the year 2020.
b. What does it mean by the earnings per share that you have calculated in (a)?
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