The Following Information Relates to the Tykex Company for 2014

question 66

Multiple Choice

The following information relates to the Tykex Company for 2014:
Net income,$50,000
Common stock,shares outstanding on January 1: 30,000
June 30,2014,issued 2,000 shares of 8% cumulative convertible preferred
Stock,$100 par value,each share convertible into 10 shares
Of common stock.
September 30,2014,issued a 40% stock dividend.
What is diluted earnings per share?

• A)$1.00
• B)$0.89
• C)$0.81
• D)$0.76

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Definitions:

Economic Growth

The increase in a country's production of goods and services over time, indicative of a growing economy.

Technology

Implementing scientific insights for real-world applications, chiefly in the field of industry.

Unemployment

The situation where individuals who are able and willing to work cannot find employment.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing between options.