Question

The amount earned during the accounting period on each outstanding share of common stock is called...

The amount earned during the accounting period on each outstanding share of common stock is called ______.
Select one:
a. book value per share
b. net profits after taxes
c. earnings per share
d. dividend per share
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The Correct Answer is c. earnings per share

Earning per share (EPS) = Net Income / Number of outstanding shares. EPS is the amount earned per outstanding share of common stock during an accounting period/financial year.Hence, EPS is the correct answer.

Book Value per share (BPS) = Total Sharehoders Equity / Number of outstanding shares. It is not related to the earnings.

Net profits after taxes is the total earnings it is not calculated on per outstanding share basis.

Dividend per share = Total Dividend to be distributed / Number of outstanding shares. Dividend per share tells the amount which has been distributed to the shareholders after retaintion.It the share of the profit which has been distributed to the shareholders.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Bramble Corporation earned $405,000 during a period when it had an average of 100,000 shares of...
Bramble Corporation earned $405,000 during a period when it had an average of 100,000 shares of common stock outstanding. The common stock sold at an average market price of $15 per share during the period. Also outstanding were 15,900 warrants that could be exercised to purchase one share of common stock for $10 for each warrant exercised. (a) Are the warrants dilutive? Yes or No (b) Compute basic earnings per share. (Round answer to 2 decimal places, e.g. $2.55.) Basic...
Stock options exercisable at $15 each to obtain 25,000 shares of common stock were outstanding during...
Stock options exercisable at $15 each to obtain 25,000 shares of common stock were outstanding during a period when the average and year-end market price of the common stock was $30. Application of the treasury stock method for the assumed exercise of these stock options in computing diluted earnings per share will increase the weighted-average number of outstanding common shares by Question 7 options: a) 12,500 b) 10,000 c) 5,000 d) 11,000
5. Book value per common share equals a. total common shareholders’ equity divided by the number...
5. Book value per common share equals a. total common shareholders’ equity divided by the number of shares outstanding on the date of the balance sheet. b. total common shareholders’ equity divided by the weighted-average number of shares outstanding during the accounting period. c. total common shareholders’ equity divided by the number of shares outstanding on the beginning date of the income statement. d. total shareholders’ equity divided by the number of shares outstanding on the date of the balance...
Boggs Company has 40,000 shares of common stock outstanding. The book value per share of this...
Boggs Company has 40,000 shares of common stock outstanding. The book value per share of this stock was $60.00 and the market value per share was $75.00 at the end of the year. Net income for the year was $400,000. Interest on long term debt was $40,000. Dividends paid to common stockholders were $3.00 per share. The tax rate was 30%. The company's price-earnings ratio at the end of the year was: A. 25 B. 20 C. 7.50 D. 6.00
On January 1, 2021, Indigo Corp. had 484,000 shares of common stock outstanding. During 2021, it...
On January 1, 2021, Indigo Corp. had 484,000 shares of common stock outstanding. During 2021, it had the following transactions that affected the Common Stock account. February 1 Issued 116,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 99,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 61,000 shares of treasury stock Determine the weighted-average number of shares outstanding as of December 31, 2021. The weighted-average number of shares outstanding enter...
A company has $10 par common stock outstanding with a total par value of $4,000,000 and...
A company has $10 par common stock outstanding with a total par value of $4,000,000 and 5%, $50 par cumulative, nonparticipating preferred stock with a total par value of $3,000,000. No dividend was declared on the stock in the last year. In the current year, the company earned a net income of $1,700,000 and dividends paid, included a dividend of $3 per share on the common stock. What is the total amount of dividend paid to shareholders in the current...
A company earned net income of $1,500,000 in 2019 and had 150,000 shares of common stock...
A company earned net income of $1,500,000 in 2019 and had 150,000 shares of common stock outstanding on January 1, 2019. The tax rate is 20% and the common stock sold at an average market price of $24 per share during the period. The company had the following transactions affecting common shares outstanding during the year: • Issued 50,000 shares of common stock on March 1, 2019 • Repurchased 5,000 shares of common stock on June 1, 2019 • Had...
The following information pertains to Parsons Co.:       Preferred stock, cumulative:             Par per share          &n
The following information pertains to Parsons Co.:       Preferred stock, cumulative:             Par per share                                                                                                      $100             Dividend rate                                                                                                         8%             Shares outstanding                                                                                          10,000             Dividends in arrears                                                                                            none       Common stock:             Par per share                                                                                                        $10             Shares issued                                                                                                120,000             Dividends paid per share                                                                                   $2.70             Market price per share                                                                                    $48.00       Additional paid-in capital                                                                                    $400,000       Unappropriated retained earnings (after closing)                                              $270,000       Retained earnings appropriated for contingencies                                            $300,000       Common treasury stock:             Number of shares                                                                                           ...
Warrants exercisable at $20 each to obtain 70000 shares of common stock were outstanding during a...
Warrants exercisable at $20 each to obtain 70000 shares of common stock were outstanding during a period when the average market price of the common stock was $25. Application of the treasury stock method for the assumed exercise of these warrants in computing diluted earnings per share will increase the weighted average number of outstanding shares by
On January 1, 2018, Sweet Corp. had 461,000 shares of common stock outstanding. During 2018, it...
On January 1, 2018, Sweet Corp. had 461,000 shares of common stock outstanding. During 2018, it had the following transactions that affected the Common Stock account. February 1 Issued 124,000 shares March 1 Issued a 10% stock dividend May 1 Acquired 104,000 shares of treasury stock June 1 Issued a 3-for-1 stock split October 1 Reissued 61,000 shares of treasury stock Determine the weighted-average number of shares outstanding as of December 31, 2018. The weighted-average number of shares outstanding Assume...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT