In 2020, Wendy Inc. reported net income of $200,000 and did not declare any dividends. Wendy Inc. has 9% cumulative prreferrred shares in the amount of $120,000 on its balance sheet. During 2020, Wendy Inc. had a weighted average of 100,000 common shares outstanding and ending balance of 80,000 common shares at year end. 

Calculate Wendy Inc.'s 2020 earning per share. 

 

a) 0.80

b) 1.00

c) 1.89

d) 2.37

e) 2.00

Answer rating: 100% (QA)

To calculate earnings per share EPS you use the formula EPS Net Income ... View the full answer