Oratz Company's earnings per share of common stock for 20X6 were closest to:

A) $19.61.
B) $20.25.
C) $28.93.
D) $1.74.

Question

Oratz Company's earnings per share of common stock for 20X6 were closest to:A) $19.61.B) $20.25.C) $28.93.D) $1.74.

william Parker · Accepted Answer

Final Answer : A, Explanation :  Earnings per share (EPS) is calculated as (Net Income - Preferred Dividends) / Average Common Shares Outstanding. Net income is $343,000, preferred dividends are $12,000, and common shares are 18,000 ($180,000 / $10 par value). EPS = ($343,000 - $12,000) / 18,000 = $19.61.

Oratz Company's earnings per share of common stock for 20X6 were closest to:

A) $19.61.
B) $20.25.
C) $28.93.
D) $1.74.

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