If a Company Reported a Profit for the Year of £90m,share

question 20

Multiple Choice

If a company reported a profit for the year of £90m,share capital of £200m and a share price of £9.00 - what is the earnings per share (EPS) ?

• A) 20p per share
• B) 10p per share
• C) 45p per share
• D) 22p per share

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Definitions:

Cumulative Preferred Stock

A type of preferred stock that accrues dividends if they are not paid as scheduled, with these unpaid dividends to be paid out before common shareholders can receive dividends.

Unearned Interest

Interest that has been collected on a loan by the lender but not yet earned, often because the loan may be paid off early.

Estimated Property Taxes

An approximation of the property taxes due on real estate, often used for budgeting or accounting purposes before the actual tax bill is received.

Modified Cash Basis

An accounting method that combines elements of both accrual and cash basis accounting, recording some transactions on an accrual basis and others on a cash basis.