In 2014, Esther Corporation Reported Net Income of $600,000

question 58

Multiple Choice

In 2014, Esther Corporation reported net income of $600,000. It declared and paid preferred stock dividends of $150,000 and common stock dividends of $60,000. During 2014, Esther had a weighted average of 250,000 common shares outstanding. Compute Esther's 2014 earnings per share.

• A) $1.56
• B) $1.80
• C) $2.40
• D) $3.00

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Definitions:

Section Width

The sidewall-to-sidewall measurement on a tire.

Aspect Ratio

A tire term calculated by dividing the section height by the section width.

Cracked Rim

A type of damage to the outer edge of a wheel where a crack has formed, potentially compromising the wheel's structural integrity.

Inner Tube

A rubber tube located inside some types of tires that is inflated to hold air pressure.