Samson Company Has Common Stock of $150,000 and Retained Earnings

question 52

Essay

Samson Company has common stock of $150,000 and retained earnings of $140,000 at yearend. During the year, 20,000 shares of stock were outstanding. Net income was reported as $70,000. What is the company's earnings per share?
a. $3.50
b. $1.07
c. $0.73
d. $10.25

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Definitions:

Merchandise Valued

The estimated worth or price of goods that are bought and sold in business transactions.

British Pound

The currency of the United Kingdom, also known formally as the pound sterling, used throughout the UK and its territories.

U.S. Dollar

The currency of the United States, widely used worldwide as a standard for financial transactions.

Merchandise Valued

The total worth of goods held by a company for the purpose of resale.