Clarke Corporation Had Net Income of $365,000,paid Its Required Preferred

question 23

Multiple Choice

Clarke Corporation had net income of $365,000,paid its required preferred dividend of $17,500 and had no other share transactions during the year.If the weighted-average number of common shares outstanding during the year is 69,500,the earnings per share is:

• A) $5.50
• B) $5.00
• C) $5.25
• D) $10.00

---

Definitions:

Intuition

is the ability to understand or know something immediately, without the need for conscious reasoning.

Heuristics

Mental shortcuts or rules of thumb that simplify decision-making by reducing complex problem-solving to simpler judgments.

Decision-Making

The cognitive process of selecting a course of action among multiple alternatives based on the assessment of each option's potential outcomes.

Mental Shortcuts

Heuristic methods or simplified processes used by the brain to make decisions or solve problems quickly.