A company reports the following:? $\begin{array}{lr}
\text { Net income } & \$ 160,000 \
\text { Preferred dividends } & \$ 10,000 \
\text { Shares of common stock outstanding } & 20,000 \
\text { Market price per share of common stock } & \$ 35
\end{array}$ The company's earnings per share on common stock is
A) $13.33
B) $8.50
C) $7.50
D) $35.00

Question

Quizplus · Accepted Answer

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

A Company Reports the Following The Company's Earnings Per Share on Common Stock Is A)

A Company Reports the Following The Company's Earnings Per Share on Common Stock Is
A)