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

Question:

Keanu 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 Keanu's earnings per share of common stock? Fred Tyme, the president of Keanu, 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...