The Abel Company Provided the Following Information from Its Financial

question 98

Multiple Choice

The Abel Company provided the following information from its financial records: What is the amount of the company's earnings per share?
$$\begin{array} { | l | r | l | r | } \hline \text { Net income } & \$ 250,000 & \text { Common shares outstanding } 1 / 1 & 200,000 \\\hline \text { Common stock dividends } & \$ 20,000 & \text { Common shares outstanding } 12 / 31 & 300,000 \\\hline \text { Preferred stock dividends } & \$ 25,000 & \text { Preferred shares outstanding } 1 / 1 & 10,000 \\\hline \text { Sales } & \$ 1,000,000 & \text { Preferred shares outstanding } 12 / 31 & 6,000 \\\hline\end{array}$$

• A)$0.82
• B)$1.00
• C)$0.90
• D)$0.75

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Definitions:

Billion Years

A time scale used in geology and astronomy to describe events or processes that happened a billion years ago or the age of geological formations.

Isotopic Age

The determination of the age of a mineral, rock, or geologic event based on the ratio of parent isotopes to daughter isotopes within a given system.

Geologic Timescale

A dating system used chronologically by geologists and other scientists to detail the timing and relationships of historical events on Earth.

Unconformity

A geological feature that represents a gap in the geological record, marking a period where deposition stopped, eroded, then resumed.