The Following Information Is Available for Bradshaw Corporation and Newell

question 115

Multiple Choice

The following information is available for Bradshaw Corporation and Newell Corporation: $$\begin{array} { | l | c | c | c | c | } \hline { \text { (in millions) } } & { \text { Bradshaw Corporation } } && { \text { Newell Corporation } } \\\hline & 2017 & 2016 & 2017 & 2016 \\\hline \text { Preferred dividends } & 25 & 10 & 0 & 30 \\\hline \text { Net income } & 500 & 480 & 490 & 520 \\\hline \begin{array} { l } \text { Shares outstanding at the } \\\text { end of the year }\end{array} & 200 & 180 & 150 & 200 \\\hline \begin{array} { l } \text { Shares outstanding at the } \\\text { beginning of the year }\end{array} & 180 & 150 & 200 & 220 \\\hline\end{array}$$ Based on this information, which of the following is suggested by the earnings per share calculations (rounded to two decimals) and the information given?

• A)There is lower performance in 2016 than in 2017 for Newell Corporation.
• B)There is higher performance in 2016 than in 2017 for Newell Corporation.
• C)There are fewer earnings available to Newell's common stockholders in 2017 than in 2016.
• D)There is a decrease in preferred shares of stock in 2017 as compared with 2016.

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