Question

Curtis Corporation reports net income for 20X9 of $150,000.00. Curtis Corporation had (1 point)

outstanding for all of 20X9 10,000 shares of cumulative $50.00 par, 10 percent preferred stock.

Curtis Corporation had outstanding for all of 20x9 75,000 shares of $10.00 par common stock.

Earnings per share is

O $1.20.

O $10.00

O $1.33.

O $2.00

Answer 1

Answer: $1.33.

Explanation:

Earnings per share = (Net income - Preferred dividends) / Common shares outstanding

Preferred dividends = 10,000 shares * 50 * 10%

= $50,000

Earnings per share = (150,000 - 50,000) / 75,000

= $1.33