Kalin Corporation had 2020 net income of $1,000,000. During 2020, Kalin paid a dividend of $2 per

Question:

Kalin Corporation had 2020 net income of $1,000,000. During 2020, Kalin paid a dividend of $2 per share on 100,000 shares of preferred stock. During 2020, Kalin had outstanding 250,000 shares of common stock. Compute Kalin’s 2020 earnings per share.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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