Earnings per Share Assignment | Top Universities
February 18th, 2020
QUESTION 7
- A company’s Dec 31, 2015 equity accounts are shown below:
Preferred Stock (7%, $100 par, cumulative, 8,000 authorized) $ 400,000
Common Stock ($10 par, 200,000 shares authorized) 1,000,000
On April 1, 2015, 25,000 shares of common stock had been issued when the market price of the stock was $15. On August 31, 2015, 30,000 shares of common stock had been issued in exchange for some land when the stock was trading at $18 per share. No new shares of preferred stock were issued during the year. If the company reported net income of $200,000 in 2015, what are the earnings per share? (Round to the nearest cent.)
| A. | $2.33 | |
| B. | $2.00 | |
| C. | $2.71 | |
| D. | $1.92 | |
| E. | $1.72 |
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