Rainbow Company reported $ 239,000 net income for the current year. It has 100,000 shares of common

Question:

Rainbow Company reported $ 239,000 net income for the current year. It has 100,000 shares of common shares outstanding for the entire year and another 50,000 shares of 3% nonconvertible, cumulative, $ 10 preferred shares outstanding for the entire year. The board of directors did not declare dividends in the current year. Compute basic earnings per share for the current year.
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...