Information from the Financial Statements Is Provided in the Following

question 88

Multiple Choice

Information from the financial statements is provided in the following table:
$\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\\\text { Net income } & \$ 150,000 & \$ 120,000 \\\text { Cash dividends paid on preferred shares } & 15,000 & 15,000 \\\text { Cash dividends paid on common shares } & 42,000 & 38,000 \\\text { Average number of preferred shares outstanding } & 20,000 & 20,000 \\\text { Average number of common shares outstanding } & 105,000 & 95,000 \\\text { Market price per share of common shares at year end } & 25.10 & 22.70\end{array}$
-Refer to the figure Randstad Inc.How much will earnings per share be reported as for Year 2?

• A) $1.08
• B) $1.20
• C) $1.29
• D) $1.43

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Definitions:

Insurance Claims

Requests made by policyholders to insurance companies for payment of benefits due under their insurance policies, following loss or damage.

Medical Necessity

A criterion used by healthcare providers and insurance companies to determine if a treatment or procedure is essential for diagnosis or treatment.

Kidney Failure

A medical condition where the kidneys lose their ability to filter waste and extra fluids from the blood, leading to accumulation of harmful substances.

Long-Term Disabilities

Disabilities that affect an individual's ability to perform normal daily activities for an extended period, often permanently.