Rudyard Corporation had 100,000 shares of common stock and 10,000 shares of 8%, $100 par convertible preferred stock outstanding during the year. Net income for the year was $400,000 and dividends were paid to both common and preferred shareholders. Rudyard's effective tax rate is 40%.
- What is Rudyard's basic EPS?
A) $2.13.
B) $4.80.
C) $4.00.
D) $3.20.

Question

Quizplus · Accepted Answer

$\frac{\$ 400,000-80,000}{100,000}=\$ 3.20$

Rudyard Corporation Had 100,000 Shares of Common Stock and 10,000