Question

Earnings per share is computed for: a. common stock. b. non-redeemable preferred. c. warrants d. All...

  1. Earnings per share is computed for:

a.

common stock.

b.

non-redeemable preferred.

c.

warrants

d.

All of the above

Homework Answers

Answer #1

Earnings per share are computed for common stock. As common stockholders are the owners of the company, so they have an interest in the earning of the company. The stronger the earning of a company, the better will the common stock perform in the market. Non-redeemable preferred have fixed pay and don't depend too much on EPS. Warrants are right to buy shares at predetermined prices.

So the correct option is "a"

If you find the solution helpful, then please give a rating.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Calculate earnings per share: a. Net income, $240,000 b. Preferred shares issued, 6,000 c. Average number...
Calculate earnings per share: a. Net income, $240,000 b. Preferred shares issued, 6,000 c. Average number of common stock shares issued, 24,000 d. Cash dividends declared and paid on common stock, $30,000 e. Market price per share, $36 f. Average treasury shares of common stock, 4,000
Which of the following is a nonvoting stock?​ a. ​Founders' shares b. ​Preferred stock c. ​Preemptive...
Which of the following is a nonvoting stock?​ a. ​Founders' shares b. ​Preferred stock c. ​Preemptive stock d. ​Growth stock e. Common stock​ Which of the following represents the minimum legal financial obligation of a common stockholder if a firm is liquidated and additional funds are needed to repay its debt? a. The redemption value of the common stock b. The par value of the common stock c. The earnings per share of the common stock d. The market value...
________ preferred shares contain a provision requiring that preferred shareholders share ratably in distributions with common...
________ preferred shares contain a provision requiring that preferred shareholders share ratably in distributions with common shareholders. A) Cumulative B) Participating C) Convertible D) Redeemable
The preferred stock of Company A pays a constant $1.00 per share dividend. The common stock...
The preferred stock of Company A pays a constant $1.00 per share dividend. The common stock of Company B just paid a $1.00 dividend per share, but its dividend is expected to grow at 4 percent per year forever. Company C common stock also just paid a dividend of $1.00 per share, but its dividend is expected to grow at 10 percent per year for five years and then grow at 4 percent per year forever. All three stocks have...
A complex capital structure requires? a. a dual presentation of earnings per share b. consists of...
A complex capital structure requires? a. a dual presentation of earnings per share b. consists of common stock and convertible preferred stock or convertible bonds c. applies only when a company has nonconvertible preferred stock or nonconvertible bonds d. both a and b
When a dividend is not declared on preferred stock, and the common share­holders cannot receive a...
When a dividend is not declared on preferred stock, and the common share­holders cannot receive a dividend until all past and current dividends are paid to the preferred shareholders, the preferred stock is a. noncumulative b. participating c. redeemable d. cumulative.
Hanson Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000...
Hanson Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 6% convertible bonds outstanding during 2015. The preferred stock is convertible into 40,000 shares of common stock. During 2015, Hanson paid dividends of $.60 per share on the common stock and $1.50 per share on the preferred stock. Each $1,000 bond is convertible into 40 shares of common stock. The net income for 2015 was $400,000 and the income tax rate was 30%....
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements...
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $15 par value (no change during the year) $3,900,000 Preferred $5 stock, $100 par (no change during the year) 3,000,000 The net income was $982,000 and the declared dividends on the common stock were $65,000 for the current year. The market price of the common stock is $22.40 per share. For...
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements...
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $25 par value (no change during the year) $5,500,000 Preferred $5 stock, $200 par (no change during the year) 6,000,000 The net income was $678,000 and the declared dividends on the common stock were $55,000 for the current year. The market price of the common stock is $18.00 per share. For...
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements...
Earnings per Share, Price-Earnings Ratio, Dividend Yield The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $15 par value (no change during the year) $2,400,000 Preferred $10 stock, $200 par (no change during the year) 4,000,000 The net income was $712,000 and the declared dividends on the common stock were $40,000 for the current year. The market price of the common stock is $24.00 per share. For...