Information Concerning the Capital Structure of Shepherd Corporation Follows

question 9

Multiple Choice

Information concerning the capital structure of Shepherd Corporation follows During 2017, Shepherd paid dividends of $1.00 per common share and $2.50 per preferred share.The preferred shares are non-cumulative, and convertible into 20,000 common shares.The 9% convertible bonds are convertible into 50,000 common shares.Net income for calendar 2017 was $500,000.Assume the income tax rate is 30%.Basic earnings per share for 2017 is

• A)$3.33.
• B)$3.65.
• C)$4.75.
• D)$5.00.

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Definitions:

Defence Mechanism

Psychological strategies deployed by individuals unconsciously to protect themselves from anxiety arising from unacceptable thoughts or feelings.

Sublimation

The process of redirecting socially unacceptable impulses or urges into socially acceptable actions or behaviors.

Displacement

In psychology, a defense mechanism where an individual shifts negative feelings from their original source to a less threatening recipient.

Repression

A defense mechanism where distressing thoughts and memories are unconsciously kept out of conscious awareness.