The following information is available for Bradshaw Corporation and Newell Corporation: $$\begin{array} { | l | c | c | c | c | }
\hline { \text { (in millions) } } & { \text { Bradshaw Corporation } } && { \text { Newell Corporation } } \
\hline & 2017 & 2016 & 2017 & 2016 \
\hline \text { Preferred dividends } & 25 & 10 & 0 & 30 \
\hline \text { Net income } & 500 & 480 & 490 & 520 \
\hline \begin{array} { l }
\text { Shares outstanding at the } \
\text { end of the year }
\end{array} & 200 & 180 & 150 & 200 \
\hline \begin{array} { l }
\text { Shares outstanding at the } \
\text { beginning of the year }
\end{array} & 180 & 150 & 200 & 220 \
\hline
\end{array}$$ Based on this information, which of the following is suggested by the earnings per share calculations (rounded to two decimals) and the information given?
A)There is lower performance in 2016 than in 2017 for Newell Corporation.
B)There is higher performance in 2016 than in 2017 for Newell Corporation.
C)There are fewer earnings available to Newell's common stockholders in 2017 than in 2016.
D)There is a decrease in preferred shares of stock in 2017 as compared with 2016.

Question

The following information is available for Bradshaw Corporation and Newell Corporation: $$\begin{array} { | l | c | c | c | c | } 
\hline  { \text { (in millions) } } &  { \text { Bradshaw Corporation } } && { \text { Newell Corporation } } \
\hline  & 2017 & 2016 & 2017 & 2016 \
\hline \text { Preferred dividends } & 25 & 10 & 0 & 30 \
\hline \text { Net income } & 500 & 480 & 490 & 520 \
\hline \begin{array} { l } 
\text { Shares outstanding at the } \
\text { end of the year }
\end{array} & 200 & 180 & 150 & 200 \
\hline \begin{array} { l } 
\text { Shares outstanding at the } \
\text { beginning of the year }
\end{array} & 180 & 150 & 200 & 220 \
\hline
\end{array}$$ Based on this information, which of the following is suggested by the earnings per share calculations (rounded to two decimals) and the information given?
A)There is lower performance in 2016 than in 2017 for Newell Corporation.
B)There is higher performance in 2016 than in 2017 for Newell Corporation.
C)There are fewer earnings available to Newell's common stockholders in 2017 than in 2016.
D)There is a decrease in preferred shares of stock in 2017 as compared with 2016.

Quizplus · Accepted Answer

The Answer of The following information is available for Bradshaw Corporation and Newell Corporation: $$\begin{array} { | l | c | c | c | c | } 
\hline  { \text { (in millions) } } &  { \text { Bradshaw Corporation } } && { \text { Newell Corporation } } \
\hline  & 2017 & 2016 & 2017 & 2016 \
\hline \text { Preferred dividends } & 25 & 10 & 0 & 30 \
\hline \text { Net income } & 500 & 480 & 490 & 520 \
\hline \begin{array} { l } 
\text { Shares outstanding at the } \
\text { end of the year }
\end{array} & 200 & 180 & 150 & 200 \
\hline \begin{array} { l } 
\text { Shares outstanding at the } \
\text { beginning of the year }
\end{array} & 180 & 150 & 200 & 220 \
\hline
\end{array}$$ Based on this information, which of the following is suggested by the earnings per share calculations (rounded to two decimals) and the information given?
A)There is lower performance in 2016 than in 2017 for Newell Corporation.
B)There is higher performance in 2016 than in 2017 for Newell Corporation.
C)There are fewer earnings available to Newell's common stockholders in 2017 than in 2016.
D)There is a decrease in preferred shares of stock in 2017 as compared with 2016.

The Following Information Is Available for Bradshaw Corporation and Newell