A company reports the following:
| Net income | $721,000 |
| Preferred dividends | $41,000 |
| Shares of common stock outstanding | 80,000 |
| Market price per share of common stock | $85.85 |
a. Determine the company’s earnings per share on common stock.
b. Determine the company’s price-earnings ratio.
Mason Manufacturing had 2012 earnings of $850,000. Cash dividends per share were $1.25. The company had an average of 350,000 shares of common stock outstanding. The market price of the stock at the end of the year was $30 per share. What are the earnings per share for 2012?
A. $21.50
B. $1.50
C. $2.43
D. $24.00
E. This cannot be determined from the information given.
At December 31, 2016, St. John s Limited had 4,000,000 common shares outstanding (no preferred shares issued). An additional 250,000 common shares were issued on July 1, 2017, and 500,000 more on October 1, 2017. As well, on April 1, 2017, St. John s issued 10,000, $1,000 face value, 8% convertible bonds. Each bond is convertible into 40 common shares. No bonds were converted in 2017. What is the number of shares to be used in calculating basic earnings per share and diluted earnings per share, respectively, for 2017?
A. 4,750,000 and 5,050,000
B. 4,250,000 and 4,250,000
C. 4,250,000 and 4,650,000
D. 4,250,000 and 4,550,000
AA Corporation has 250,000 shares of $10 par common stock issued and outstanding. AA Corporation also has 50,000 shares of $100, 6% par cumulative preferred stock In 2017, AA had a net income of $3,500,000. The number of shares of both common and preferred stock has not changed during the year, and the preferred stock dividends were paid at the end of 2017.
What are the common earnings per share (EPS) for 2017?
a. $14.20
b. $14
c. $12.80
d. $13.73
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