Stone Company reported net income of $2,536 million in 2016. The weighted average number of common shares outstanding during 2016 was 554 million shares. Brook paid $80 million in dividends on preferred stock, which was convertible into 20 million shares of common stock.
How much is basic earnings per share amount for 2016?
A) $4.43
B) $4.27
C) $4.58
D) $4.42

Question

Quizplus · Accepted Answer

($2,536 million - $80 million) / 554 million = $4.43

Stone Company Reported Net Income of $2,536 Million in 2016