Strait Company Has Outstanding Shares as Follows: 16,000 Common Shares

question 146

Multiple Choice

Strait Company has outstanding shares as follows: 16,000 common shares and 5,000 preferred shares. What is the number of shares that should be used in the denominator to compute earnings per share?

• A) 5,000
• B) 16,000
• C) 11,000
• D) 21,000