Financial information for Retro Designs includes the following selected data: What is the company's earnings per share?
$$\begin{array} { | l r | }
\hline \text { Net income (in millions) } & \$ 175 \
\hline \text { Preferred stock dividends (in millions) } & \$ 25 \
\hline \text { Common shares outstanding (in millions) } & 250 \
\hline \text { Stock price } & \$ 10.00 \
\hline
\end{array}$$

Question

Financial information for Retro Designs includes the following selected data: What is the company's earnings per share?
$$\begin{array} { | l r | } 
\hline \text { Net income (in millions) } & \$ 175 \
\hline \text { Preferred stock dividends (in millions) } & \$ 25 \
\hline \text { Common shares outstanding (in millions) } & 250 \
\hline \text { Stock price } & \$ 10.00 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Earnings per share = (Net income - Preferred stock dividends) / Common shares outstanding= (175 - 25) / 250= $0.60

Financial Information for Retro Designs Includes the Following Selected Data