Question

Cainas Cookies had the following information reported for 2015:

Revenues $100,000
Expenses $40,000
Preferred Dividends $10,000
Common Dividends $20,000
Preferred shares outstanding - 10,000 shares, $100 par value
Common shares outstanding - 50,000 shares, $1 par value EPS is:
A. $1.20 per share
B. $1.00 per share
C. $.60 per share
D. $.50 per share

Answer 1

Answer: B. $1.00 per share

Step-by-step explanation:

Revenue- expenses = profit

$100000 - $40000 =$60000

Profit - pref.shareholder

$60000 - $10000 = $50000

EPS = residual / ordinary shareholding

EPS = $50000/50000shares

EPS = $1