During 2018,Bascom Bakery Paid Out $33,525 of Common Dividends

question 68

Multiple Choice

During 2018,Bascom Bakery paid out $33,525 of common dividends.It ended the year with $187,500 of retained earnings versus the prior year's retained earnings of $159,600.How much net income did the firm earn during the year?

• A) $55,897
• B) $49,140
• C) $47,297
• D) $61,425
• E) $63,882

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Definitions:

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is under or overvalued.

Market Value Per Share

The current price at which a single share of a company's stock is bought or sold in the financial markets.

Earnings Per Share

Earnings Per Share (EPS) is a measure used to indicate the profitability of a company, calculated as the company's net income divided by the number of outstanding shares of its common stock.

Par Preferred Stock

The value assigned to preferred stock for accounting purposes, not necessarily its market value.