New Corporation Had Net Income for 2016 of $80,000

question 78

Multiple Choice

New Corporation had net income for 2016 of $80,000.New Corporation had 13,000 shares of common stock outstanding at the beginning of the year and 24,000 shares of common stock outstanding at the end of the year.There were 12,000 shares of preferred stock outstanding all year.During 2016,New Corporation declared and paid preferred dividends of $21,000.What is New Corporation's earnings per share? (Round the answer to two decimal places. )

• A)$3.33
• B)$3.19
• C)$4.32
• D)$2.46

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Definitions:

Excise Tax

A tax levied on specific goods or services, such as alcohol, tobacco, and gasoline.

Elastic Supply

A situation where the quantity supplied of a good changes significantly in response to changes in its price.

Elastic Demand

a situation where the quantity demanded of a good or service significantly changes in response to a change in price.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price.