
(a)
Earnings per Share (EPS): The part of profit earned by each share of the Company is called as earning per share. It reveals the profitability of the company. To calculate earnings per share net income is divided by average number of outstanding shares.
Return on Common
Dividend: The amount that shareholders receive in return of their investment is called as dividend. The distribution of net income of the Company to the shareholders in return of their investment is the dividend.
To determine: The earnings per share and return on stockholders’ equity of Company P and C for 2013 and can these measures be used to compare profitability of the two companies.
(b)
The amount of dividend paid by company P and C in, 2013.

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Chapter 14 Solutions
Accounting Principles, Volume 2: Chapters 13 - 26
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