6.At the beginning of 2004, the Alaska Corporation had 2 million shares of common stock outstanding and no preferred stock. At the end of August, 2004, Alaska issued 600,000 new shares of common stock. If Alaska reported net income equal to $8.8 million, what was the firm’s earnings per share for 2004? A) $3.38. B) $3.67. C) $4.40. D) $4.00.
7.Last year, the AKB Company had net income equal to $5 million. Combined state and local taxes were 45 percent. The firm paid $1 million to holders of its 1 million common shares and $250,000 to 100,000 preferred shareholders. What was AKB's earnings per share (EPS) last year? A) $2.25. B) $4.75. C) $2.50. D) $3.75.
8.For a firm with a simple capital structure, all of the following are necessary to measure basic earnings per share (EPS) EXCEPT: A) dividends paid to preferred shareholders. B) number of shares outstanding at the beginning of the year. C) dividends paid to common shareholders. D) the timing and number of shares issued or repurchased during the year.
9.The following data pertains to the McGuire Company: § Net income equals $15,000 § 5,000 shares of common stock issued on January 1st § 10 percent stock dividend issued on June 1st § 1000 shares of common stock were repurchased on July 1st § 1000 shares of 10 percent, par $100 preferred stock each convertible into 8 shares of common were outstanding the whole year What is the company’s basic earnings per share (EPS)? A) $2.5. B) $1.5. C) $1.0. D) $1.2.
10.The standard equation for computing basic earnings per share (EPS) is: A) [Sales - Cost of Goods Sold] / Number of Preferred Shares Outstanding. B) [Net Income - Common Dividends] / Weighted Average Number of Common Shares Outstanding. C) [Net Income – Preferred Dividends]/Weighted Average Number of Common Shares Outstanding. D) Total Assets – Total Liabilities + Stockholder’s Equity. | 
发表于 2008-4-10 11:10
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