World Airlines has no preferred stock outstanding. The company had 50,000 shares of common stock outstanding on January 1, 2019 and issued 20,000 additional shares on April 1.
If World's net income was $1,077,000, the company should report earnings per share of (to the nearest cent):
A) $12.81
B) $13.80
C) $16.57
D) $15.39

Question

Quizplus · Accepted Answer

The Answer of World Airlines has no preferred stock outstanding. The company had 50,000 shares of common stock outstanding on January 1, 2019 and issued 20,000 additional shares on April 1.
If World's net income was $1,077,000, the company should report earnings per share of (to the nearest cent):
A) $12.81
B) $13.80
C) $16.57
D) $15.39

World Airlines Has No Preferred Stock Outstanding