A Company Reports the Following The Company's Earnings Per Share on Common Stock Is
A)

question 85

Multiple Choice

A company reports the following:? $\begin{array}{lr}\text { Net income } & \$ 160,000 \\\text { Preferred dividends } & \$ 10,000 \\\text { Shares of common stock outstanding } & 20,000 \\\text { Market price per share of common stock } & \$ 35\end{array}$ The company's earnings per share on common stock is

• A) $13.33
• B) $8.50
• C) $7.50
• D) $35.00

---

Definitions:

Regressive Tax

A tax for which high-income taxpayers pay a smaller fraction of their income than do low-income taxpayers.

Federal Tax Receipts

The revenue collected by the federal government from various taxes like income tax, corporation tax, and other levies.

Individual Income Taxes

Taxes levied on the income of individuals or households, varying with income levels.

Social Insurance Taxes

Taxes collected by a government to fund social security programs, providing benefits for retirees, the disabled, and the unemployed.