Question :
101. Based the following information, what earnings per share?
Common shares outstanding : 1234214
101. Based on the following information, what is earnings per share?
Common shares outstanding at the beginning
of the accounting period
210,000
Common shares outstanding at the end of the
accounting period
230,000
Weighted-average common shares outstanding
during the period
220,000
Preferred stock dividend declared and paid
$ 70,000
Preferred stock dividend in arrears
$ 20,000
Net income
$500,000
A. $1.9545B. $1.8696C. $2.3810D. $2.2727
102. The balance sheets at the end of each of the first two years of operations indicate the following:
2007
2006
Total current assets
$250,000
$225,000
Total investments
50,000
25,000
Total fixed assets
450,000
300,000
Total current liabilities
100,000
37,500
Total long-term liabilities
200,000
112,500
Preferred 9% stock, $100 par
50,000
50,000
Common stock, $10 par
250,000
250,000
Paid-in capital in excess of par-
common stock
25,000
25,000
Retained earnings
125,000
125,000
If net income is $50,000 and interest expense is $20,000 for 2007, what are the earnings per share on common stock for 2007? A. $1.82B. $2.00C. $2.80D. $1.20
103. The following information is available for Spellman Corporation:
2006
Market price per share of common stock
$30.00
Earnings per share on common stock
4.00
Which of the following statements is correct? A. The price-earnings ratio is 7.5 and a share of common stock was selling for 7.5 times the amount of earnings per share at the end of 2006.B. The price-earnings ratio is 13.3% and a share of common stock was selling for 13.3% more than the amount of earnings per share at the end of 2006.C. The price-earnings ratio is 7.5 and a share of common stock was selling for 150 times the amount of earnings per share at the end of 2006.D. The market price per share and the earnings per share are not statistically related to each other.
104. For the year that just ended, a company reports net income of $3,200,000. There are 750,000 shares authorized, 600,000 shares issued, and 500,000 shares of common stock outstanding. What is the earnings per share? A. $6.40B. $3.20C. $5.33D. $3.33
105. A corporation with convertible preferred stock and stock options outstanding should disclose A. earnings per shareB. primary earnings per shareC. fully diluted earnings per shareD. primary earnings per share and fully diluted earnings per share
106. The balance sheets at the end of each of the first two years of operations indicate the following:
2007
2006
Total current assets
$250,000
$225,000
Total investments
50,000
25,000
Total fixed assets
450,000
300,000
Total current liabilities
100,000
37,500
Total long-term liabilities
200,000
112,500
Preferred 9% stock, $100 par
50,000
50,000
Common stock, $10 par
250,000
250,000
Paid-in capital in excess of par-
common stock
25,000
25,000
Retained earnings
125,000
125,000
If net income is $80,000 and interest expense is $20,000 for 2007, what are the earnings per share on common stock for 2007? A. $2.91B. $3.02C. $2.75D. $3.20
107. For the year that just ended, a company reports net income of $3,200,000. There are 750,000 shares authorized, 700,000 shares issued, and 600,000 shares of common stock outstanding. What is the earnings per share? A. $6.40B. $4.27C. $4.57D. $5.33
108. For the year that just ended, a company reports net income of $2,200,000. There are 750,000 shares authorized, 700,000 shares issued, and 600,000 shares of common stock outstanding. What is the earnings per share? A. $4.40B. $3.14C. $4.57D. $3.67
109. Which of the following would be involved in the computation of earnings per share for a company with a simple capital structure? A. Weighted average number of share outstandingB. Shares outstanding at end of year whether or not the number has changed during the yearC. Number of shares of preferred stock outstandingD. Dividends declared on common stock
110. The Lange Company has a simple capital structure. The company has 20,000 shares of common stock outstanding. Net income for the year was $65,000. Lange declared and paid a preferred stock dividends of $4,000 during the year. Earnings per share for the year is: A. $3.25B. $.125C. $3.05D. $3.45
