A corporation has determined that if it were to go bankrupt, common stockholders would receive $8.47 per share. this calculation is known as $2.73
Start via calculating how lots of the internet profits are available for not unusual stockholders (net income after taxes minus favored dividends effects in the profits available for common stockholders).
The favored stockholders received $900,000 in dividends ($15 million par × 6% = $900,000), or 600,000 shares × $1.50 in line with proportion = $900,000). After subtracting $900,000 from the net profits of $20 million, this leaves $19.1 million (earnings available for commonplace stockholders).
Compute EPS (profits available for common ÷ range of not unusual stocks extraordinary = $19.1 million ÷ 7 million shares = $2.73 consistent with share EPS).
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