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Hill corp. had 600,000 shares of common stock outstanding on january 1, issued 900,000 shares on july 1, and had income applicable to common stock of $2,940,000 for the year ending december 31, 2021. earnings per share of common stock for 2021 would be

Respuesta :

The earning per share of common stock for the year 2021 comes out to be $3.92.

What is common stock?

Common stock is a type of stock being owned by a company and reported under the head stockholder's equity on the balance sheet.

Given values:

Net income: $2,940,000

Average shares in common stock= 750,000 (600,000 + 900,000 / 2)

Computation of EPS of common stock:

[tex]\rm\ EPS=\frac{\rm\ Net \rm\ income}{\rm\ Average \rm\ outstanding \rm\ shares}\\ \rm\ EPS=\frac{\$2,940,000}{\$750,000}\\\rm\ EPS=\$3.92[/tex]

Therefore, the amount of share price earned on the common stock is equal to $3.92.

Learn more about the common stock in the related link:

https://brainly.com/question/9970004

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