Blue Company reported:
$$\begin{array} { l l }
\text { Share price } & \$ 18 \
\text { Net profit } & \$ 3,000 \
\text { Freference dividend } & \$ 500 \
\text { Ordinary dividend } & \$ 1,000 \
\text { Issued ordinary shares } & 1,000 \text { shares }
\end{array}$$
-
Earnings per ordinary share is:
A) $2.50.
B) $3.00.
C) $1.80.
D) $1.50.

Question

Blue Company reported:
$$\begin{array} { l l } 
\text { Share price } & \$ 18 \
\text { Net profit } & \$ 3,000 \
\text { Freference dividend } & \$ 500 \
\text { Ordinary dividend } & \$ 1,000 \
\text { Issued ordinary shares } & 1,000 \text { shares }
\end{array}$$
-
Earnings per ordinary share is:
A) $2.50.
B) $3.00.
C) $1.80.
D) $1.50.

Quizplus · Accepted Answer

Earnings per ordinary share is calculated as (Net profit - Preference dividend) / Issued ordinary shares = ($3,000 - $500) / 1,000 = $2.50.

Blue Company Reported - Earnings Per Ordinary Share Is: A) $2

Blue Company Reported -
Earnings Per Ordinary Share Is:
A) $2