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  • 1.  cma part 2 MCQ .. calculate EPS

    Posted 02-23-2018 12:25 AM

    hello,
    Can anyone help resolve the following MCQ

    At December 31, 20x5 and 20x4, Rose Corp. had 180,000 shares of common stock and 10,000 shares of 6%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 20x5 or 20x4. Net income for 20x5 was $375,000. For 20x5, what did the earnings per common share amount to?
    $1.75
    $2.08
    $1.97
    $1.42


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    Mohamed Atif Ebrahim
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  • 2.  RE: cma part 2 MCQ .. calculate EPS

    Posted 02-23-2018 01:55 AM
    1.75

    Cumulative dividend 10000*100*6%=60000
    Net income=375,000-60000=315,000

    EPS=315,000/180,000=1.75





  • 3.  RE: cma part 2 MCQ .. calculate EPS

    Posted 02-23-2018 02:49 AM
    Why did you not consider the preferred stock dividend for year 20x4?

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    Mohamed Atif Ebrahim
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  • 4.  RE: cma part 2 MCQ .. calculate EPS

    Posted 03-12-2018 10:13 AM
    Question is asked to calculate EPS for year 2015 so 2014 is not considered.

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    Srikanth Sukumar
    Wipro Ltd
    Chennai
    India
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