Vessels Corporation's net income for the most recent year was $2,532,000.A total of 200,000 shares of common stock and 200,000 shares of preferred stock were outstanding throughout the year.Dividends on common stock were $3.80 per share and dividends on preferred stock were $1.25 per share.The earnings per share of common stock is closest to:
A)$12.66
B)$8.86
C)$7.61
D)$11.41

Question

Quizplus · Accepted Answer

Earnings per share = (Net Income - Preferred Dividends)
F1F1F1S1F1F1F10 Average number of common shares outstanding
= ($2,532,000 - 200,000 shares F1F1F1S1F1F1F10 $1.25 per share)F1F1F1S1F1F1F10 200,000 shares
= ($2,532,000 - $250,000)F1F1F1S1F1F1F10 200,000 shares = $11.41 per share

Vessels Corporation's Net Income for the Most Recent Year Was