If Net Income Is $10,000 and There Were 8,000 Common

question 71

Multiple Choice

If net income is $10,000 and there were 8,000 common shares issued and outstanding the entire year, and $100,000 of noncumulative, nonconvertible 6% $100 par preferred shares outstanding the entire year, what is EPS if no dividends were declared during the year?

• A)$0.50
• B)$1.25
• C)$2.00
• D)$1.00

---

Definitions:

Business Property

Assets owned by a business, including both real estate and personal property used for business operations.

Federal Government Expenditures

The total amount of money spent by the federal government of a country, covering all its operations, programs, and services.

National Defense

Activities and measures undertaken by a government to protect its country from external threats or military aggression.

Expenditure Item

A specific category of spending, either by an individual, organization, or government.