A Company Had Net Income of $250,000

question 87

Multiple Choice

A company had net income of $250,000.On January 1,there were 12,000 shares of common stock outstanding.On May 1,the company issued an additional 9,000 shares of common stock.The company declared a $7,900 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company had earnings per share of:

• A)$13.45
• B)$13.89
• C)$11.53
• D)$26.90
• E)Amount cannot be determined as problem does not state if there are any dividends in arrears.

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Definitions:

Ethics

The study of what is right and wrong in human conduct, often guiding individuals and businesses in their decisions.

Right

A moral or legal entitlement to have or do something, emphasizing a fair treatment or ownership of a concept, item, or privilege.

Wrong

Incorrect or false; not in accordance with established facts, truth, or morality.

Knowledge

Information, understanding, or skill that one gains through education, experience, or training.