Shamrock Company Had Net Income of $30,000

question 28

Multiple Choice

Shamrock Company had net income of $30,000. On January 1, there were 8,000 share of common stock outstanding. On April 1, the company issued an additional 2,000 shares of common stock. The company declared a $2,700 dividend on its noncumulative, nonparticipating preferred stock. There were no other stock transactions. The company has an earnings per share of:

• A) $2.87
• B) $2.73
• C) $3.41
• D) $3.16
• E) $3.75

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Definitions:

Process Variables

Variables that are measured, monitored, or controlled during a process to ensure optimal quality or performance.

Sample Means

The average value of a set of sample data, used to estimate the population mean.

Standard Deviation

An index of how much individual observations of a dataset vary from the dataset's mean.

Lower Control Limit

The lowest boundary of acceptable performance in a statistical quality control chart, below which a process is considered out of control.