Alpha Corporation has the following Shareholders� Equity section of the Balanc

Question

Alpha Corporation has the following Shareholders� Equity section of the Balance Sheet at 1/1/2004:

Preferred Stock, 10%, $100 Par Value, 10,000 shares authorized, 1,000 issued, and outstanding
$ 100,000

Additional Paid In Capital � Preferred Stock
240,000

Common Stock, $10 Par Value, 100,000 shares authorized, 50,000 shares issued and outstanding
500,000

Additional Paid In Capital � Common Stock
800,000

Total Paid In Capital
$1,640,000

Retained Earnings
2,000,000

Total Shareholders� Equity
$ 3,640,000




Assume that Alpha has Net Income for the year of $360,000. What is the dollar amount of Earnings Per Share for Alpha for the year?

a. $ 6.86
b. $ 7.05
c. $ 7.00
d. $ 7.20
e. insufficient information to solve

Explanation / Answer

Answer: c

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