A company reports the following: Net income $160,000 Preferred dividends $10,000 Shares of common stock outstanding $20,000 Market price per share of common stock $35 The company’s earnings per share on common stock is a. $13.33 b. $8.50 c. $7.50 d. $35.00

A company reports the following: Net income $160,000 Preferred dividends $10,000 Shares of common stock outstanding $20,000 Market price per share of common stock $35 The company’s earnings per share on common stock is a. $13.33 b. $8.50 c. $7.50 d. $35.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A company reports the following:

Net income $160,000

Preferred dividends $10,000

Shares of common stock outstanding $20,000

Market price per share of common stock $35

The company’s earnings per share on common stock is

a. $13.33

b. $8.50

c. $7.50

d. $35.00

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