Robertson Corporation Reported Net Income for Year 1 of $220,000

question 73

Multiple Choice

Robertson Corporation reported net income for Year 1 of $220,000 and Year 2 of $340,000. The weighted-average common shares outstanding 140,000 in Year 1 and 130,000 in Year 2. Robertson also has 10,000 shares of $100 par value, cumulative, 5% preferred stock outstanding in both years. Dividends were not declared in Year 1, but both years' dividends were declared and paid in Year 2. Compute EPS for both years. (Round your answers to the nearest cent.)

• A) Year 1, $1.21; Year 2, $1.21
• B) Year 1, $1.21; Year 2, $2.23
• C) Year 1, $1.21; Year 2, $2.62
• D) Year 1, $1.57; Year 2, $2.62

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Definitions:

Fourth Harmonic

The fourth harmonic refers to a frequency that is four times the fundamental frequency of a periodic waveform, affecting the system's overall wave shape and performance.

Fundamental Power Frequency

The primary frequency at which electrical power systems operate, typically 50 Hz or 60 Hz depending on the country.

60 Hertz

A frequency of 60 cycles per second, commonly used as the standard frequency of AC electrical power in several countries, including the United States.

Single-Phase Powerlines

Electrical power supply lines that deliver alternating current with a single waveform, commonly used in homes and small businesses.