Scotland Corporation Had Net Income for 2018 of $80,000

question 206

Multiple Choice

Scotland Corporation had net income for 2018 of $80,000.Scotland 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 2018,Scotland declared and paid preferred dividends of $21,000.What is Scotland'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:

Median Earnings

The middle value of income distribution, where half of the population earns more and half earns less.

Labor Market

The supply and demand for labor, where employers seek to hire workers, and individuals offer their work for wages.

Median Earnings

The middle value of earnings in a given demographic, geographical area, or profession, with an equal number of individuals earning more and less than this amount.

Labor Market

A marketplace where employers find workers and workers find jobs, characterized by the supply and demand for labor.