If the Marifield Steel Fabrication Company earned in net income and paid a cash dividend of to its​ stockholders, what are the​ firm's earnings per share if the firm has shares of stock​ outstanding?

$5.30

Explanation:

Complete question "If the Marifield Steel Fabrication Company earned $ 482, 000 in net income and paid a cash dividend of $ 289,000 to its​stockholders, what are the​ firm's earnings per share if the firm has 91,000 shares of stock​ outstanding? The​ company's earnings per share are ? (Round to the nearest​ cent.)"

Cash dividend are not deductible since it was paid out of reserves.

Earnings per share = (Net Income - Interest) / Number of Shares

Earnings per share = ($482,000 - $0) / $91,000

Earnings per share = $482,000 / $91,000

Earnings per share = $5.2967033

Earnings per share = $5.30

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