If Net Income Is $25,000 and There Were 18,000 Common

question 102

Multiple Choice

If net income is $25,000 and there were 18,000 common shares issued and outstanding the entire year,and 100 cumulative,nonconvertible,6% $100 par preferred shares outstanding the entire year,what is EPS if no dividends were declared during the year.There are two years' dividends in arrears on the preferred shares.(Rounded to the nearest cent)

• A) $1.39
• B) $1.18
• C) $1.25
• D) $1.16
• E) $1.36

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Definitions:

Opiate of the Masses

A metaphor for something that dulls awareness and leads to passive acceptance, originally describing religion's effect on society and its divisions.

Working Class

A social group consisting of people employed in lower tier jobs, often involving manual labor or industrial work, and typically characterized by lower income and educational levels.

Religion

A system of beliefs, practices, and moral values centered around the worship of a higher power or deity.

Group Consensus

A mutual agreement or collective unanimous decision-making process within a group.