Shamrock Company Had Net Income of $30,000

question 158

Multiple Choice

Shamrock Company had net income of $30,000.The weighted-average common shares outstanding were 8,000.The company declared a $2,700 dividend on its noncumulative,nonparticipating preferred stock.There were no other stock transactions.The company's earnings per share is:

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

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Definitions:

Bond Purchase

The act of acquiring bonds, which are securities representing a loan made by an investor to a borrower, often for the purpose of investment and receiving interest income.

Profit Margin

A financial ratio that measures the percentage of profit a company earns from its total revenue.

Total Asset Turnover

Total asset turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue; it indicates how well a company can convert its assets into revenue.

Return on Total Assets

A financial ratio that measures a company's profitability in relation to its total assets, indicating how effectively a company uses its assets to generate profit.