What is the rate earned on total assets for this company?
-A company reports the following: Net income
$160,000
Preferred dividends
$10,000
Shares of common stock outstanding
20,000
Market price per share of common stock
$35
The company's earnings per share on common stock is
A) $13.33
B) $8.50
C) $7.50
D) $35.00

Question

What is the rate earned on total assets for this company?
-A company reports the following: Net income
$160,000
Preferred dividends
$10,000
Shares of common stock outstanding
20,000
Market price per share of common stock
$35
The company's earnings per share on common stock is
A) $13.33 
B) $8.50 
C) $7.50 
D) $35.00

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated as (Net Income - Preferred Dividends) / Shares of Common Stock Outstanding. Here, EPS = ($160,000 - $10,000) / 20,000 = $7.50.

What Is the Rate Earned on Total Assets for This