Cainas Cookies had the following information reported for 2015:

Revenues $100,000

Expenses $40,000

Preferred Dividends $10,000

Common Dividends $20,000

Preferred shares outstanding - 10,000 shares, $100 par value

Common shares outstanding - 50,000 shares, $1 par value EPS is:

A. $1.20 per share

B. $1.00 per share

C. $.60 per share

D. $.50 per share

Question

Business

Kiara Kidd

11 May, 01:26

Cainas Cookies had the following information reported for 2015:

Revenues $100,000

Expenses $40,000

Preferred Dividends $10,000

Common Dividends $20,000

Preferred shares outstanding - 10,000 shares, $100 par value

Common shares outstanding - 50,000 shares, $1 par value EPS is:

A. $1.20 per share

B. $1.00 per share

C. $.60 per share

D. $.50 per share

+3

Answers (1)

Know the Answer?

Harper Gonzales · Answer 1

Answer: B. $1.00 per share

Explanation:

Revenue - expenses = profit

$100000 - $40000 = $60000

Profit - pref. shareholder

$60000 - $10000 = $50000

EPS = residual / ordinary shareholding

EPS = $50000/50000shares

EPS = $1