When computing the basic earnings per share in a structure where there are cumulative preference shares, the net income to ordinary shares is equal to the actual net income of the company a. Add current dividend for preference shares whether declared or not b. Less current dividend for preference shares whether declared or not c. Less current dividend for preference shares only when declared d. Less current and previous dividend for preference shares declared or not e. Add current dividend for preference shares only when declared

When computing the basic earnings per share in a structure where there are cumulative preference shares, the net income to ordinary shares is equal to the actual net income of the company a. Add current dividend for preference shares whether declared or not b. Less current dividend for preference shares whether declared or not c. Less current dividend for preference shares only when declared d. Less current and previous dividend for preference shares declared or not e. Add current dividend for preference shares only when declared

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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The amount of income earned per share of outstanding common stock is known as: Multiple Choice Return on assets per share. Restricted retained earnings per share. Dividends per share. Earnings per share. Continuing operations per share.
TRUE OR FALSE Earnings per share is found by taking the net income for the year divided by the number of common shares outstanding at the end of the year.
a. Times interest earned ratio times b. Earnings per share on common stock c. Price-earnings ratio d. Dividends per share of common stock e. Dividend yield % %24
4. Define the following terms. Signaling hypothesis; clientele effect Residual distribution model; extra dividend Declaration date; holder-of-record date; ex-dividend date; payment date Dividend reinvestment plan (DRIP) Stock split; stock dividend; stock repurchase
Net income, less preferred dividends, divided by the average total number of outstanding shares is the: Group of answer choices A6Return on equity ratio b)Earnings per share c)Book value per share d)Profit margin e)None of the above
The price-earnings ratio on common stock is calculated as a.market price per share of common stock, divided by earnings per share on common stock b.market price per share of common stock, divided by dividends per share of common stock c.earnings per share of common stock, divided by market price per share of common stock d.dividends per share of common stock, divided by earnings per share on common stock