Hawi Inc. has net income of $200,000, average shares of common stock outstanding of 40,000, and preferred

Question:

Hawi Inc. has net income of $200,000, average shares of common stock outstanding of 40,000, and preferred dividends for the period of $20,000. What is Hawi’s earnings per share of common stock? Sid Brey, the president of Hawi, believes that the computed EPS of the company is high Comment.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...