Chapter 15 Decision Case 2 Given: 400,000 shares of common stock outstanding; Income tax rate of 40%; Net income of $1,200,000; Family desires to...

I have attached my excel worksheet with the first two parts of the problem solved, however, I am having difficulty compelting the third part which deals with preferred shares. The text tells me the correct answer for earnings per share is $3.88, but I am unable to arrive at the stated solution. Your assistance is greatly appreciated. I would also like to know the reasoning which leads to the correct answer.