During the Current Year, a Corporation Has 2,000 Shares of 10

question 44

Multiple Choice

During the current year, a corporation has 2,000 shares of 10%, $50 par, cumulative preferred stock outstanding and 6,000 shares of $10 par common stock outstanding. The company has net income of $53,000 and paid all preferred dividends as usual. Compute earnings per share. Round all amounts to nearest cent.

• A) $7.17
• B) $8.83
• C) $5.38
• D) $6.63

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Definitions:

Brown Decision

Refers to the landmark 1954 U.S. Supreme Court case Brown v. Board of Education, which declared state laws establishing separate public schools for black and white students to be unconstitutional.

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