Exam1 Problem (Example 1) - EPS Page 1 9/26/2018 Problem: Earnings Per Share (EPS)& Return on Equity (ROE) The following financial information is available for ABC Corporation. 2013 2012 Average owners' equity Dividends paid to common stockholders Dividends paid to preferred stockholders Net income 800,000 $600,000 30,000 20,000 91,000 50,000 20,000 130,000 The weighted average number of shares of common stock outstanding was 40,000 for 2012 Instructions Calculate earnings per share and return on common stockholders' equity for 2013 and 2012. Solution and 50,000 for 2013