Big Apple Cabins Has Net Income of $725,000

question 11

Multiple Choice

Big Apple Cabins has net income of $725,000.Throughout the year,the company had 150,000 shares of common stock outstanding.Also,the company has 25,000 shares of preferred stock that pay a dividend of $5.00 per share that is convertible into 5 shares of common stock for each share of preferred.The preferred stock is considered to be dilutive.The tax rate for Big Apple Cabins is 40%.What are the diluted earnings per share for Big Apple Cabins?

• A)$2.00
• B)$2.25
• C)$2.50
• D)$2.64
• E)$4.00

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Definitions:

Central Fissure

Also known as the Rolandic fissure, it is a significant groove on the surface of the brain separating the frontal and parietal lobes.

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for higher cognitive functions like decision making, problem solving, and controlling behavior.

Parietal Lobes

Regions of the brain located behind the frontal lobes, important for integrating sensory information and in the processing of spatial orientation.

Hippocampus

A part of the brain involved in the formation of new memories and is also associated with learning and emotions.