Blue Company reported: $\begin{array}{ll}
\text { Share price } & \$ 18 \
\text { Net profit } & \$ 3000 \
\text { Preference dividend } & \$ 500 \
\text { Ordinary dividend } & \$ 1000 \
\text { Issued ordinary shares } & 1000 \text { shares }
\end{array}$
- Earnings per ordinary share is:
A)$2.50
B)$3.00
C)$1.80
D)$1.50

Question

Quizplus · Accepted Answer

Earnings per ordinary share is calculated as (Net profit - Preference dividend) / Issued ordinary shares = ($3000 - $500) / 1000 = $2.50.

Blue Company Reported - Earnings Per Ordinary Share Is: A)$2

Blue Company Reported - Earnings Per Ordinary Share Is:
A)$2