Trenton Company has provided the following information:
Net income,$240,000;
Preferred shares issued,6,000;
Average common shares issued,24,000;
Common cash dividends declared and paid,$30,000;
Market price per share,$36
Average treasury shares of common stock,4,000.
What were Trenton's earnings per share?
A)$8.00
B)$7.00
C)$10.50
D)$12.00

Question

Trenton Company has provided the following information:
 Net income,$240,000;
 Preferred shares issued,6,000;
Average common shares issued,24,000;
Common cash dividends declared and paid,$30,000;
 Market price per share,$36
Average treasury shares of common stock,4,000.
What were Trenton's earnings per share?
A)$8.00
B)$7.00
C)$10.50
D)$12.00

Quizplus · Accepted Answer

Earnings per share ($12) = Net income ($240,000) / Average number of common shares outstanding (24,000 - 4,000).

Trenton Company Has Provided the Following Information