June Corporation had net income of $88,000, 1,000,000 common shares outstanding, and no preferred shares. Neptune Corporation had net income of $120,000, 2,500,000 common shares outstanding, and preferred shares entitled to a $10,000 dividend when declared. Which of the following statements is true: Select one: a. Neptune and June have substantially similar earnings per share b. Neptune's common shareholders have a better rate of return than June's shareholders c. Neptune's basic earnings per share exceeds June's basic earnings per share by more than 3 cents Ⓒd. June's basic earnings per share is double Neptune's basic earnings per share
June Corporation had net income of $88,000, 1,000,000 common shares outstanding, and no preferred shares. Neptune Corporation had net income of $120,000, 2,500,000 common shares outstanding, and preferred shares entitled to a $10,000 dividend when declared. Which of the following statements is true: Select one: a. Neptune and June have substantially similar earnings per share b. Neptune's common shareholders have a better rate of return than June's shareholders c. Neptune's basic earnings per share exceeds June's basic earnings per share by more than 3 cents Ⓒd. June's basic earnings per share is double Neptune's basic earnings per share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:June Corporation had net income of $88,000, 1,000,000 common shares outstanding, and no preferred shares. Neptune
Corporation had net income of $120,000, 2,500,000 common shares outstanding, and preferred shares entitled to a $10,000
dividend when declared. Which of the following statements is true:
Select one:
a. Neptune and June have substantially similar earnings per share
b. Neptune's common shareholders have a better rate of return than June's shareholders
c. Neptune's basic earnings per share exceeds June's basic earnings per share by more than 3 cents
d. June's basic earnings per share is double Neptune's basic earnings per share
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