1 Preferred Stock 500,000

Common Stock 750,000

Retained Earnings (800,000-40,000-260,000) 500,000
Total Stockholder's Equity 1,750,000

Total Stockholder's Equity

Less: Value of Preferred Stock
Preferred Dividend - 3 years (500,000 * 8%*3) 120,000
Liquidating Value of Preferred Stock 500,000
Equity Available for Preferred Stockholder
Equity Available for Common Stockholder
No. of Outstanding Common Shares
Book Value per Share

2 Net Income
Less: Value of Preferred Stock
Preferred Dividend - 3 years 120,000
Liquidating Value of Preferred Stock 500,000
Equity Available for Preferred Stockholder
Equity Available for Common Stockholder
Average Outstanding Common Shares
Earnings per Share

3 Preferred Stock 500,000

Common Stock 750,000
Retained Earnings (800,000-40,000-260,000) 500,000
Treasury Stock -75,000
Total Stockholder's Equity 1,675,000

4 Common Stock 7,500

Paid-In Capital 405,000
Retained Earnings 337,500
Treasury Stock 75,000
1,750,000

620,000
1,130,000
750,000
1.51

800,000

620,000
180,000
750,000
0.24
 Dates Shares Outstanding
5 January 1 120,000
June 01 12,000
September 30 24,000

Average Weighted Shares Outstanding

6 Net Income 3,000,000

Average Weighted Shares Outstanding 121,000
Earning Per Share 24.8
Weights Weighted Average Outstanding Shares
12/12 120,000
07/12 7,000
3/12 -6,000

121,000