Question

"Benedict Corporation reports the following information:

Net Income $750,000
Dividends on common stock 210,000
Dividends on preferred stock 90,000
Weighted average common shares outstanding 250,000
Benedict should report earnings per share of"
a. $1.80. b. $2.16 c. $2.64. d. $3.00.

Answer 1

To calculate the earnings per share (EPS), divide the net income by the weighted average common shares outstanding. Benedict Corporation should report earnings per share of $3.00.

Step-by-step explanation:

To calculate the earnings per share (EPS), we need to divide the net income by the weighted average common shares outstanding. In this case, the net income is $750,000 and the weighted average common shares outstanding is 250,000.

EPS = Net Income / Weighted Average Common Shares Outstanding

EPS = $750,000 / 250,000

EPS = $3.00

Therefore, Benedict Corporation should report earnings per share of $3.00. The correct answer is option d. $3.00.