Financial statement data for the year ending December 31 for Langford Company are as follows: Net income $450,000 Preferred dividends $50,000 Average number of common shares outstanding 80,000 shares Compute the earnings per share for the year. a.$5.00 b.$6.25 c.$5.63 d.$6.00

Financial statement data for the year ending December 31 for Langford Company are as follows: Net income $450,000 Preferred dividends $50,000 Average number of common shares outstanding 80,000 shares Compute the earnings per share for the year. a.$5.00 b.$6.25 c.$5.63 d.$6.00

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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Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

Question

Financial statement data for the year ending December 31 for Langford Company are as follows:

Net income	$450,000
Preferred dividends	$50,000
Average number of common shares outstanding	80,000	shares

Compute the earnings per share for the year.

a.$5.00

b.$6.25

c.$5.63

d.$6.00

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