1. Lesson 13-2
SHARE OF NET INCOME ASSIGNED TO PREFERRED AND COMMON STOCK    
Calculating Share of Net Income for Preferred Stock
Total Dividend Preferred Stock’s
Par Value  Rate = Share of Net Income
$170,  8% = $13,600.00    
Calculating Share of Net Income for Preferred Stock
Preferred Stock’s
Total Share of Common Stock’s Net Income  Net Income = Share of Net Income
$96,  $13, = $83,142.51
Lesson 13-2, page 356

2.     EARNINGS PER SHARE Calculating Earnings per Share
Lesson 13-2
EARNINGS PER SHARE    
Calculating Earnings per Share
Share of Shares of Stock Earnings
Net Income ÷ Outstanding = per Share
$83, ÷ 31,950 = $2.60
Lesson 13-2, page 357

3.     CALCULATING EQUITY PER SHARE Calculating Equity per Share
Lesson 13-2
CALCULATING EQUITY PER SHARE    
Calculating Equity per Share
Total Shares of
Stockholders’ Capital Stock Equity
Equity ÷ Outstanding = per Share
Preferred $170,000.00
Common 448,655.86
÷ 1,700
÷ 31,950
= $100.00
= $14.04
Total $618,655.86
Lesson 13-2, page 358

4.     CALCULATING PRICE-EARNINGS RATIO
Lesson 13-2
CALCULATING PRICE-EARNINGS RATIO    
Calculating Price-Earning Ratio
Market Price Earnings Price-Earnings
per Share ÷ per Share = Ratio
$ ÷ $2.60 = 7.5 times
Lesson 13-2, page 358

5. TERMS REVIEW earnings per share equity per share market value
price-earnings ratio
rate earned on average stockholders’ equity
rate earned on average total assets
Lesson 13-2, page 362