The Following Information Relates to the Capital Structure of Quantico

question 40

Multiple Choice

The following information relates to the capital structure of Quantico Corp.: During 2014 Quantico paid $90,000 in dividends on the preferred stock.Quantico's net income for 2014 was $1,960,000 and the income tax rate was 40 percent.For the year ended December 31,2014,the diluted earnings per share is

• A) $7.29.
• B) $7.43.
• C) $8.17.
• D) $8.29.

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Definitions:

Sales Contracts

Legal agreements between buyers and sellers detailing the terms and conditions of a sale, including price, delivery, and product specifications.

Commercial Unit

A term used in law referring to goods or property that are considered a single whole for purposes of sale or lease, often due to their interconnectedness or the context of their use.

Bales of Hay

Compacted, bound, and often wrapped bundles of hay used for feeding livestock, as bedding, or for agricultural purposes.

Accepted

Acknowledgment or agreement to the terms of an offer, thereby creating a binding contract.