Question

Swifty Corporation had 296000 shares of common stock issued and outstanding at December 31, 2020. During 2021, no additional common stock was issued. On January 1, 2021, Swifty issued 408000 shares of nonconvertible preferred stock. During 2021, Swifty declared and paid $170000 cash dividends on the common stock and $158000 on the nonconvertible preferred stock. Net income for the year ended December 31, 2021, was $957000. What should be Swifty's 2021 earnings per common share, rounded to the nearest penny

Answer 1

Answer:

2.70

Explanation:

Calculation for What should be Swifty's 2021 earnings per common share, rounded to the nearest penny

Earnings per common share=($957,000 - $158,000)/296,000

Earnings per common share=$799,000/296,000

Earnings per common share= 2.70

Therefore What should be Swifty's 2021 earnings per common share, rounded to the nearest penny is 2.70