What is earnings per share $($EPS$)?$ How it is calculate?

Ratio Analysis:

Montgomery Ltd$.$ reported net income of $$625,000$ for the year ended December $31,2024.$ During the year, the company also declared and paid dividends of $$30,000$ on the company's preferred shares.At the beginning of the year, Montgomery had $250,000$ common shares outstanding. No shares were issued or repurchased during the year.

Basic earnings per share $=($Net income

Preferred dividends$)/$Weighted average number of common shares outstanding.