For last year, Roxy Corporation reported profit of $500,000, and paid $125,000 in dividends to the 250,000 preferred shares issued.The weighted average of common shares was 1,500,000 shares.Roxy's earnings per share was
A)$0.33.
B)$0.29.
C)$0.25.
D)$0.21.

Question

Quizplus · Accepted Answer

Earnings per share (EPS) is calculated as (Net Income - Preferred Dividends) / Weighted Average Common Shares. Here, EPS = ($500,000 - $125,000) / 1,500,000 = $0.25.

For Last Year, Roxy Corporation Reported Profit of $500,000, and Paid