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

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, affecting its liquidity.

Consent Ability

The capability of an individual to understand and agree to the terms of services or treatment, acknowledging the implications and consequences.

Minor Child

An individual under the age of majority, as legally defined, not considered legally competent to make certain decisions.