1 During 2017, Vanderbilt Corporation Had 500,000 Shares of $1

Essay

1. During 2017, Vanderbilt Corporation had 500,000 shares of $1 par value common stock outstanding and 25,000 shares of 5%, $100 par value preferred stock outstanding. There were no stock transactions during the year. Net income for the year was $540,000. Compute the earnings per share.
2. During 2017, Fusion Valley Corporation had 500,000 shares of $1 par value common stock outstanding and 40,000 shares of 5%, $100 par value preferred stock outstanding. There were no stock transactions during the year. Net income for the year was $740,000. Compute the earnings per share.