Pooly Inc. has net income of $136,000 for the current year. At January 1, the company had outstanding 37,000 shares of $10 par value common stock and 5,000 shares of 8%, $50 par value cumulative preferred stock. On October 1, an additional 12,000 shares of common stock were issued.
What is the earnings per share (to the nearest cent)?
A) $2.37
B) $2.90
C) $3.40
D) $2.70
E) None of the above

Question

Quizplus · Accepted Answer

The Answer of Pooly Inc. has net income of $136,000 for the current year. At January 1, the company had outstanding 37,000 shares of $10 par value common stock and 5,000 shares of 8%, $50 par value cumulative preferred stock. On October 1, an additional 12,000 shares of common stock were issued.
What is the earnings per share (to the nearest cent)?
A) $2.37
B) $2.90
C) $3.40
D) $2.70
E) None of the above

Pooly Inc Has Net Income of $136,000 for the Current Year