A Corporation Had Current Year Net Income of $2,375,000

question 90

Essay

A corporation had current year net income of $2,375,000.It paid preferred dividends of $80,000 cash and had 500,000 weighted-average shares of common stock outstanding.Calculate the corporation's earnings per share.

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Definitions:

Expectancy Theory

A motivational theory suggesting that individuals are more likely to act in a certain way if they expect that the action will lead to a desired outcome or reward.

Motivation

A psychological force that compels individuals to act toward the achievement of goals.

Attractiveness

The qualities or features of an entity that make it appealing or desirable to others.

Predetermined Wage Grades

An established set of salary levels defined before recruitment, often based on job analysis, to classify positions according to value and responsibility.